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Accounting for China's Import Growth: A Structural Decomposition for 1997–2005

Author

Listed:
  • Jiansuo Pei

    (School of International Trade and Economics, University of International Business and Economics, Beijing 100029, China)

  • Erik Dietzenbacher

    (Faculty of Economics and Business, University of Groningen, PO Box 800, 9700 AV Groningen, The Netherlands and Graduate University of the Chinese Academy of Sciences, Beijing 100049, China)

  • Jan Oosterhaven

    (Faculty of Economics and Business, University of Groningen, PO Box 800, 9700 AV Groningen, The Netherlands)

  • Cuihong Yang

    (Academy of Mathematics and Systems Science, Chinese Academy of Sciences, Beijing 100190, China)

Abstract

This paper applies structural decomposition analysis to Chinese input–output tables in order to disentangle and quantify the sources of China's import growth and China's growth in vertical specialization: that is, China's incorporation into the global supply chain. China's exports and the role of processing trade therein have increased substantially in the last decade. Yet, they account for only one third of China's import growth from 1997 to 2005. Instead, the volume growth of China's domestic final demand is found to be most important. Moreover, compared with other countries, the structural change in input–output coefficients and in the commodity composition of domestic final demand turns out to be surprisingly important. Looking only at vertical specialization, it is concluded that more than half of its growth, from 21% in 1997 to 30% in 2005, is due to the growth of China's import ratios.

Suggested Citation

  • Jiansuo Pei & Erik Dietzenbacher & Jan Oosterhaven & Cuihong Yang, 2011. "Accounting for China's Import Growth: A Structural Decomposition for 1997–2005," Environment and Planning A, , vol. 43(12), pages 2971-2991, December.
    • Handle: RePEc:sae:envira:v:43:y:2011:i:12:p:2971-2991
    DOI: 10.1068/a43396
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    References listed on IDEAS

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    Cited by:

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    2. Jose-Miguel Albala-Bertrand, 2016. "Industrial Interdependence: China 1995-2010," Working Papers 802, Queen Mary University of London, School of Economics and Finance.
    3. Zhang, Zengkai & Lin, Jintai, 2018. "From production-based to consumption-based regional carbon inventories: Insight from spatial production fragmentation," Applied Energy, Elsevier, vol. 211(C), pages 549-567.

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