Does export diversification matter for China’s regional growth?

Dahai Fu, Yanrui Wu, Ying Zhang

Research output: Contribution to journalConference articlepeer-review

1 Citation (Scopus)


China has enjoyed high economic growth for more than three decades since the initiative of economic reform in early 1980s. This growth has been driven mainly by labor-intensive export-oriented manufacturing activities. Yet, there are remarkably few empirical studies of the link between export diversification and economic growth. In this paper, the effect of export diversification on economic growth in Chinese provinces in the period 2000–2006 is examined. The findings support cross-country evidence that regions with diversified export baskets enjoy higher economic growth. However, it is found that the growth benefits are linked to diversification of export products, rather than geographical diversification of exports. Further, it is also found that the growth effect and export diversification may have a nonlinear relationship. As such, governments promoting export diversification should distinguish the diversification of export products from that of export destinations. Their policies should also change as regional economies develop.

Original languageEnglish
Pages (from-to)863-882
Number of pages20
JournalSingapore Economic Review
Issue number4
Publication statusPublished - 1 Sep 2019
Event28th Annual Conference of the Chinese-Economics-Society-Australia: In Search of New Sources of Growth - What China Should Do Next - Cairns, Australia
Duration: 17 Jul 201619 Jul 2016


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