Measuring China's domestic production networks through Trade in Value-added perspectives

Evaluating the role and performance of China's participation in Global value chains (GVCs) has been a hot policy and research issue in recent years. However, most GVCs-related literature about China focuses on country-to-country relations; less attention has been paid to China's domestic v...

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Bibliographic Details
Published inEconomic systems research Vol. 29; no. 1; pp. 48 - 65
Main Authors Meng, Bo, Fang, Yong, Guo, Jiemin, Zhang, Yaxiong
Format Journal Article
LanguageEnglish
Published Routledge 02.01.2017
Subjects
Chinese regional economy
comparative advantage
input-output
Trade in Value-added
value chain
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Summary:Evaluating the role and performance of China's participation in Global value chains (GVCs) has been a hot policy and research issue in recent years. However, most GVCs-related literature about China focuses on country-to-country relations; less attention has been paid to China's domestic value chains (DVCs). GVCs should have their domestic foundations since strong linkages across domestic firms and regions can improve productivity through gains from specialization, which make domestic industries more competitive in GVCs in turn. This paper applies the so-called Trade in Value-added (TiVA) concept and the decomposition of domestic-regional trade in TiVA terms to re-measure the inter-industrial and interregional linkages in China's DVCs. We show that TiVA-based measures can significantly enrich our understanding on both the structure change of China's regional economy and the position and participation degree of Chinese regions in DVCs.
ISSN:0953-5314
1469-5758
DOI:10.1080/09535314.2017.1282435