Thursday, November 15, 2007

Export Sophistication

The Bank of Canada('s automated mailing list) was kind enough to (im)personally send me a powerpoint presentation that accompanied Paul Jenkins' speech yesterday, which had some bland title.

However, if you care sufficiently to skip to p.16-17, you get to see a pair of fairly interesting graphs comparing the changes in export sophistication between China and Canada from 1985-2001. Now, while I have no idea of how the numbers were arrived at, and am a big believer in regarding skeptically any statistics claiming to accurately depict China as a whole, it's fairly interesting.

Basically, it illustrates that China's exports are rapidly converging with Canada's in terms of expertise required. Which is contrary to some speculation that China's just getting bigger, not smarter, and probably bad news if you're exporting from Canada.

Of course, China won't grow at 10% forever. I'm fairly sure rising inflation is a classic sign of GDP starting to approach potential.

No comments: