IDEAS home Printed from https://ideas.repec.org/a/sae/envira/v43y2011i12p2971-2991.html

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
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1068/a43396
    Download Restriction: no
    File URL: https://libkey.io/10.1068/a43396?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Jan Oosterhaven & Lourens Broersma, 2007. "Sector Structure and Cluster Economies: A Decomposition of Regional Labour Productivity," Regional Studies, Taylor & Francis Journals, vol. 41(5), pages 639-659.
    2. Sikhanwita Roy & Tuhin Das & Debesh Chakraborty, 2002. "A Study on the Indian Information Sector: An Experiment with Input-Output Techniques," Economic Systems Research, Taylor & Francis Journals, vol. 14(2), pages 107-129, June.
    3. Shigemi Kagawa & Yuki Kudoh & Keisuke Nansai & Tomohiro Tasaki, 2008. "The Economic and Environmental Consequences of Automobile Lifetime Extension and Fuel Economy Improvement: Japan's Case," Economic Systems Research, Taylor & Francis Journals, vol. 20(1), pages 3-28.
    4. Aying Liu, 1998. "Sources of Structural Change and Output Growth of China's Economy: 1987-92," Economic Change and Restructuring, Springer, vol. 31(2), pages 95-116, May.
    5. Dean, Judith & Fung, K.C. & Wang, Zhi, 2008. "How vertically specialized is Chinese trade?," BOFIT Discussion Papers 31/2008, Bank of Finland, Institute for Economies in Transition.
    6. Zhang, Youguo, 2009. "Structural decomposition analysis of sources of decarbonizing economic development in China; 1992-2006," Ecological Economics, Elsevier, vol. 68(8-9), pages 2399-2405, June.
    7. Robert Koopman & Zhi Wang & Shang-Jin Wei, 2008. "How Much of Chinese Exports is Really Made In China? Assessing Domestic Value-Added When Processing Trade is Pervasive," NBER Working Papers 14109, National Bureau of Economic Research, Inc.
    8. Diakoulaki, D. & Mandaraka, M., 2007. "Decomposition analysis for assessing the progress in decoupling industrial growth from CO2 emissions in the EU manufacturing sector," Energy Economics, Elsevier, vol. 29(4), pages 636-664, July.
    9. Jan Oosterhaven & Alex R. Hoen, 1998. "original: Preferences, technology, trade and real income changes in the European Union An intercountry decomposition analysis for 1975-1985," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 32(4), pages 505-524.
    10. B. Andreosso-O'Callaghan & Guoqiang Yue, 2002. "Sources of output change in China: 1987-1997: application of a structural decomposition analysis," Applied Economics, Taylor & Francis Journals, vol. 34(17), pages 2227-2237.
    11. Michael Lahr, 2001. "Reconciling Domestication Techniques, the Notion of Re-exports and Some Comments on Regional Accounting," Economic Systems Research, Taylor & Francis Journals, vol. 13(2), pages 165-179.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. J.M. Albala-Bertrand, 2018. "Industrial interdependence: China 1995–2010," China Economic Journal, Taylor & Francis Journals, vol. 11(2), pages 170-193, May.
    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rohman, Ibrahim Kholilul & Bohlin, Erik, 2014. "Decomposition analysis of the telecommunications sector in Indonesia: What does the cellular era shed light on?," Telecommunications Policy, Elsevier, vol. 38(3), pages 248-263.
    2. Zhang, Wei & Li, Ke & Zhou, Dequn & Zhang, Wenrui & Gao, Hui, 2016. "Decomposition of intensity of energy-related CO2 emission in Chinese provinces using the LMDI method," Energy Policy, Elsevier, vol. 92(C), pages 369-381.
    3. Françoise Lemoine & Deniz Ünal, 2012. "Scanning the Ups and Downs of China’s Trade Imbalances," Working Papers 2012-14, CEPII research center.
    4. Andrea BONFIGLIO, 2005. "Sector Potentiality and Sources of Growth. An Analysis of Structural Changes in Italy in the Nineties," Working Papers 237, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    5. Guillaume Daudin & Christine Rifflart & Danielle Schweisguth, 2011. "Who produces for whom in the world economy?," Canadian Journal of Economics, Canadian Economics Association, vol. 44(4), pages 1403-1437, November.
    6. Jan Oosterhaven, 2024. "A decomposition of economic growth decompositions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 73(4), pages 1395-1408, December.
    7. repec:era:wpaper:dp-2015-72 is not listed on IDEAS
    8. Kagawa, Shigemi & Nansai, Keisuke & Kudoh, Yuki, 2009. "Does product lifetime extension increase our income at the expense of energy consumption?," Energy Economics, Elsevier, vol. 31(2), pages 197-210.
    9. Ceren Gündoğdu & Dürdane Şirin Saracoğlu, 2016. "Participation of Turkey in Global Value Chains: An Analysis Based on World Input Output Database," ERC Working Papers 1610, ERC - Economic Research Center, Middle East Technical University, revised Sep 2016.
    10. Chen, Xikang & Cheng, Leonard K. & Fung, K.C. & Lau, Lawrence J. & Sung, Yun-Wing & Zhu, K. & Yang, C. & Pei, J. & Duan, Y., 2012. "Domestic value added and employment generated by Chinese exports: A quantitative estimation," China Economic Review, Elsevier, vol. 23(4), pages 850-864.
    11. Dmitriy Izotov, 2013. "Zones with China's concessional regime: spatial concentration and foreign trade contribution," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(1), pages 123-132.
    12. Roberts, Ivan & Rush, Anthony, 2012. "Understanding China's demand for resource imports," China Economic Review, Elsevier, vol. 23(3), pages 566-579.
    13. Dietzenbacher, Erik & Pei, Jiansuo & Yang, Cuihong, 2012. "Trade, production fragmentation, and China's carbon dioxide emissions," Journal of Environmental Economics and Management, Elsevier, vol. 64(1), pages 88-101.
    14. Judith M. Dean & Mary E. Lovely & Jesse Mora, 2017. "Decomposing China-Japan-U.S. Trade: Vertical specialization, ownership, and organizational form," World Scientific Book Chapters, in: Mary E Lovely (ed.), International Economic Integration and Domestic Performance, chapter 7, pages 119-132, World Scientific Publishing Co. Pte. Ltd..
    15. Judith M. Dean & Mary E. Lovely, 2010. "Trade Growth, Production Fragmentation, and China's Environment," NBER Chapters, in: China's Growing Role in World Trade, pages 429-469, National Bureau of Economic Research, Inc.
    16. Ivan Roberts & Anthony Rush, 2010. "Sources of Chinese Demand for Resource Commodities," RBA Research Discussion Papers rdp2010-08, Reserve Bank of Australia.
    17. Robert Koopman & William Powers & Zhi Wang & Shang-Jin Wei, 2010. "Give Credit Where Credit Is Due: Tracing Value Added in Global Production Chains," NBER Working Papers 16426, National Bureau of Economic Research, Inc.
    18. Aksoy, M. Ataman & Ng, Francis, 2013. "Demand growth versus market share gains : decomposing world manufacturing import growth," Policy Research Working Paper Series 6375, The World Bank.
    19. Zhou, Jing & Latorre, María C., 2013. "The impact of FDI on the production networks between China and East Asia and the role of the U.S. and ROW as final markets," MPRA Paper 51384, University Library of Munich, Germany.
    20. Zhi Wang & Shang-Jin Wei & Anna Wong, 2010. "Does a Leapfrogging Growth Strategy Raise Growth Rate? Some International Evidence," Working Papers on Regional Economic Integration 47, Asian Development Bank.
    21. A. V. Gotovsky, 2024. "The Role of External and Internal Markets in the Economic Growth Models of Belarus and Russia," Studies on Russian Economic Development, Springer, vol. 35(6), pages 788-799, December.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:envira:v:43:y:2011:i:12:p:2971-2991. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.