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Global or Regional Value Chains? Evidence from China

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  • Zijie Fan
  • Yabin Zhang
  • Chun Liao

Abstract

We document the regional characteristics in China’s global value chains. In contrast to the previous related literature, we focus on the right definition of domestic value added (DVA) in bilateral–sector exports and study the heterogeneity of the share of DVA finally absorbed abroad in exports (DVA ratio) across bilateral trade partners. We find that China’s DVA ratio within the “Asian factory†region is smaller and declines more over time than outside, showing typical regional characteristics of China’s value chains. Instead of final exports, intermediate exports play a dominant role in explaining the regional characteristics. This is a new finding. Using a structural gravity model, we find that DVA ratio in intermediates has fallen more across proximate trade partners for China.

Suggested Citation

  • Zijie Fan & Yabin Zhang & Chun Liao, 2019. "Global or Regional Value Chains? Evidence from China," International Regional Science Review, , vol. 42(5-6), pages 459-494, September.
    • Handle: RePEc:sae:inrsre:v:42:y:2019:i:5-6:p:459-494
    DOI: 10.1177/0160017619835900
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    References listed on IDEAS

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    Cited by:

    1. Yue Pu & Yunting Li & Jinjin Zhang, 2023. "Features and evolution of the ‘Belt and Road’ regional value chain: Complex network analysis," The World Economy, Wiley Blackwell, vol. 46(7), pages 2134-2156, July.

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