736 D. Lo and.h chan 27 per cent in 1996. It is of course well known that machinery and transport equip- ment is a broad category encompassing both labour-intensive and capital-intensive products. Yet the critical issue is whether these products are more, or less, labour intensive than other manufactures. In this regard, the fact that major world exporters of machinery and transport equipment are unexceptionally developed countries, with the top five(Japan, the US, Germany, France and the UK)accounting for almost 60 per cent of the world total in 1994 (World Trade Organization, International Trade 95, p. 102), should be taken for reference Moving further down, Table 2 gives more disaggregated data classified under Chinas statistical system. Note that within the total of manufacturing exports the share of mechanical and electronic products increased from 19 per cent in 1988 to 37 per cent in 1996. Put another way, in this period, the former category increased by hree times while the latter by seven times. Meanwhile, electronic exports increased by nine times while computer exports, which are a further disaggregated category under electronics, by 59 times. Again, it is noted that major word exporters of electronics (and computer products)are either developed or newly industrializing economies which conceivably have international comparative advantage very different from Chinas. Thus what Table 1 and Table 2 indicate at least at an intuitive level is an export pattern where more capital-intensive (or more high-tech)industries tend to expand faster. 2 p D): and (1 April 1997, p 1): GJSB (Il January (a)1988 (b)1996 (b)/(a) Exports(USS100 m 331.10 129141 Mechanical and electronic products 61.50 482.10 Electronic products 19.15 Computer products l08 Imports(USS100 m) 452.07 Mechanical and electronic products 207.00 Electronic products 79 3 echanical and electronic products This observation is in line more comprehensi Chinas exports as a whole e of descriptive ession analyses, Jiang (1993, ch. 11). for instance. identifies three of Chinas export ce in the 1980s; namely: (i) within and electronic products which are characterized by high capita and technology intensity relative to others have experienced the fastest expansion; ()within labour- and textile and clothing, relatively me he fastest exports expansion; and(iii) for most sectors of Chir mainly those with the highest capital and technology intensity in each sector. In view of our Table I and Table 2, it appears that feature()is even more pronounced in the 1990s 01998 John Wiley Sons, Ltd J.mnt.Dev.10,733-74901998)27 per cent in 1996. It is of course well known that machinery and transport equip￾ment is a broad category encompassing both labour-intensive and capital-intensive products. Yet the critical issue is whether these products are more, or less, labour￾intensive than other manufactures. In this regard, the fact that major world exporters of machinery and transport equipment are unexceptionally developed countries, with the top ®ve (Japan, the US, Germany, France and the UK) accounting for almost 60 per cent of the world total in 1994 (World Trade Organization, International Trade 1995, p. 102), should be taken for reference. Moving further down, Table 2 gives more disaggregated data classi®ed under China's statistical system. Note that within the total of manufacturing exports the share of mechanical and electronic products increased from 19 per cent in 1988 to 37 per cent in 1996. Put another way, in this period, the former category increased by three times while the latter by seven times. Meanwhile, electronic exports increased by nine times while computer exports, which are a further disaggregated category under electronics, by 59 times. Again, it is noted that major word exporters of electronics (and computer products) are either developed or newly industrializing economies, which conceivably have international comparative advantage very di€erent from China's. Thus what Table 1 and Table 2 indicate, at least at an intuitive level, is an export pattern where more capital-intensive (or more `high-tech') industries tend to expand faster.2 2 This observation is in line with some more comprehensive studies of the commodity composition of China's exports as a whole. Based on a range of descriptive and regression analyses, Jiang (1993, ch. 11), for instance, identi®es three `anomalies' of China's export performance in the 1980s; namely: (i) within total manufacturing exports, mechanical and electronic products which are characterized by high capital and technology intensity relative to others have experienced the fastest expansion; (ii) within labour￾intensive sectors like light industry and textile and clothing, relatively more capital-and technology￾intensive products have experienced the fastest exports expansion; and (iii) for most sectors of Chinese industry, the exported products are mainly those with the highest capital and technology intensity in each sector. In view of our Table 1 and Table 2, it appears that feature (i) is even more pronounced in the 1990s. Table 2. China's manufacturing exports and imports (alternative classi®cation), 1988±96. Sources: Lo (1997, ch. 1); ZTN (1996, pp. 581±582); ZTZ (1997, p. 127); ZDB (4 March 1997, p. 1); and (1 April 1997, p. 1); GJSB (11 January 1997, p. 1). (a) 1988 (b) 1996 (b)/(a) Exports (US$100 m) Total manufactures 331.10 1291.41 3.90 Mechanical and electronic products 61.50 482.10 7.84 Electronic products 19.15 184.10 9.61 Computer products 1.08 64.70 59.90 Imports (US$100 m) Total manufactures 452.07 1133.98 2.51 Mechanical and electronic products 207.00 613.60 2.96 Electronic products 52.79 158.30 3.00 Computer products 6.90 34.30 4.97 Exports±imports ratio Total manufactures 0.73 1.14 Mechanical and electronic products 0.30 0.79 Electronic products 0.36 1.16 Computer products 0.16 1.89 #1998 John Wiley & Sons, Ltd. J. Int. Dev. 10, 733±749 (1998) 736 D. Lo and T. M. H. Chan