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Domestic Value Added in China’s Exports to the World and Its Partners

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  • Dongwei Wen

Abstract

This article uses the inter-country input-output tables with heterogeneous firms compiled by OECD (2015) to measure the ratio of domestic value added content in China’s exports (RDVAE) to the world and its major trading partners at the aggregate and sector level, respectively. Our empirical results indicate the following. (1) China’s RDVAE adjusted for processing trade is much lower than that computed without adjusting for processing trade; (2) The manufacture’s RDVAE for China to its major trading partners is typically lower than that for China’s major trading partners to China; and (3) The share of domestic value added generated by China’s exporting sector itself is declining, whereas that coming from the exporting sector’s upstream domestic suppliers is growing.

Suggested Citation

  • Dongwei Wen, 2018. "Domestic Value Added in China’s Exports to the World and Its Partners," Chinese Economy, Taylor & Francis Journals, vol. 51(1), pages 45-68, January.
    • Handle: RePEc:mes:chinec:v:51:y:2018:i:1:p:45-68
    DOI: 10.1080/10971475.2017.1368885
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    Cited by:

    1. Biswajit Nag & Debashis Chakraborty & Author-Name: Sakshi Aggarwal, 2021. "India’s Act East Policy: RCEP Negotiations and Beyond," Working Papers 2101, Indian Institute of Foreign Trade.
    2. Mohsen Bahmani-Oskooee & Tatchawan Kanitpong, 2019. "Asymmetric Effects of Exchange Rate Changes on Thailand-China Commodity Trade: Evidence From 45 Industries," Chinese Economy, Taylor & Francis Journals, vol. 52(3), pages 203-231, May.
    3. Muriel Périsse & Clément Séhier, 2019. "Analysing wages and labour institutions in China: An unfinished transition," The Economic and Labour Relations Review, , vol. 30(3), pages 400-421, September.

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