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A New Era pp 31-57 | Cite as

Roles of Chinese Regions in Global Value Chains and Their Changes

An Analysis Based on a Global Input-Output Model in Which Chinese Regions Are Embedded
  • Hongfu Ni
  • Jiechang Xia
Chapter

Abstract

Not only has the division of labor system in global value chains developed extensively between countries, but it also has spread into individual countries in the form of domestic value chains. This is particularly significant in the case of China that is vast in territory and rich in natural resources with great regional differences. This chapter creates a global input-output table that covers subregions, and on this basis, develops the breakdown method for value-added exports and total export value added, and offers an empirical analysis of the roles that different regions of China played in global value chains as well as changes in 1997, 2002 and 2007. Research findings show that: (1) Trade in value added varied widely from region to region in China. In traditional statistics on trade in gross value, trade surpluses of regions were overestimated, and there even were phenomena that some regions had a trade surplus in gross-value terms but a trade deficit in value-added terms. (2) The Chinese inland regions achieved the value-added export directly by offering intermediate products to the coastal regions. Traditional statistics on trade in gross value generally overrated the coastal regions and underrated the inland regions in terms of their contributions to foreign trade. (3) Following China’s accession to the WTO, regions all over the country had a fast-increasing degree of vertical specialization, with the coastal regions outperforming the inland ones in this respect. But there were different structural factors responsible for rising vertical specialization. For the inland regions, it was largely because of increased connection with other regions in terms of vertical specialization, and in the case of the coastal regions, it was with other countries in the world.

Keywords

Global value chain Domestic value chain Value-added export Global input-output model 

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Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Hongfu Ni
    • 1
  • Jiechang Xia
    • 1
  1. 1.National Academy of Economic StrategyCASSBeijingChina

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