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Linkages and Vertical Integration in the Chinese Economy

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  • Heimler, Alberto

Abstract

The original concept of vertical integration can be applied only to the analysis of the relationship between final demand and gross output, but is unsuitable for most of supply-oriented studies, where what matters are the interindustry relations. For example, vertical integration of an industrial district with the rest of the economy cannot be measured with the traditional technique and should be accounted for by a different measure that considers the direct and indirect demand derived from the whole gross output of the district. In such a way it is possible to measure the expansionary potential that any industry has on any other one, constructing an index of vertical integration. These concepts are then applied to the input-output table of a developing country like China and they provide some understanding of the routes development strategies have to follow. Copyright 1991 by MIT Press.

Suggested Citation

  • Heimler, Alberto, 1991. "Linkages and Vertical Integration in the Chinese Economy," The Review of Economics and Statistics, MIT Press, vol. 73(2), pages 261-267, May.
    • Handle: RePEc:tpr:restat:v:73:y:1991:i:2:p:261-67
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    Cited by:

    1. Ana-Isabel Guerra & Ferran Sancho, 2013. "A Linear Price Model With Extractions," EcoMod2013 5113, EcoMod.
    2. Vicent Alcántara & Emilio Padilla, 2020. "Key sectors in greenhouse gas emissions in Spain: An alternative input–output analysis," Journal of Industrial Ecology, Yale University, vol. 24(3), pages 577-588, June.
    3. Wang, Wei & Zhang, Yue-Jun, 2022. "Does China's carbon emissions trading scheme affect the market power of high-carbon enterprises?," Energy Economics, Elsevier, vol. 108(C).
    4. Bernadette Andreosso-O'Callaghan & Guoqiang Yue, 2000. "An Analysis of Structural Change in China using Biproportional Methods," Economic Systems Research, Taylor & Francis Journals, vol. 12(1), pages 99-111.
    5. Lenzen, Manfred & Murray, Joy & Sack, Fabian & Wiedmann, Thomas, 2007. "Shared producer and consumer responsibility -- Theory and practice," Ecological Economics, Elsevier, vol. 61(1), pages 27-42, February.
    6. Garbellini, Nadia & Wirkierman, Ariel Luis, 2014. "Blocks and circularity in labour requirements: An interplay between clusters and subsystems in the EU," Structural Change and Economic Dynamics, Elsevier, vol. 28(C), pages 60-74.
    7. Joao Carlos Lopes, 2012. "High Employment Generating Sectors in Portugal: an Interindustry Approach," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 2(2), pages 125-125.
    8. Singh, Nirvikar, 2006. "Services-led industrialization in India: Assessment and lessons," MPRA Paper 1276, University Library of Munich, Germany.
    9. Duarte, Rosa & Sanchez-Choliz, Julio & Bielsa, Jorge, 2002. "Water use in the Spanish economy: an input-output approach," Ecological Economics, Elsevier, vol. 43(1), pages 71-85, November.
    10. Cardenete, Manuel Alejandro, 2011. "Análisis comparativo de sectores clave desde una perspectiva regional a través de matrices de contabilidad social: enfoques alternativos || Comparative Keysector Analysis from Regional Perspective Usi," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 12(1), pages 39-64, December.
    11. Alcántara, Vicent & Padilla, Emilio, 2009. "Input-output subsystems and pollution: An application to the service sector and CO2 emissions in Spain," Ecological Economics, Elsevier, vol. 68(3), pages 905-914, January.
    12. Manuel Alejandro Cardenete & Patricia Fuentes Saguar & Clemente Polo, 2013. "Linear General Equilibrium Model of Energy Demand and CO 2 Emissions Generated By the Andalusian Productive System," American Journal of Economics and Business Administration, Science Publications, vol. 4(4), pages 216-226, July.
    13. Ignacio Cazcarro & Iñaki Arto & Somnath Hazra & Rabindra Nath Bhattacharya & Prince Osei-Wusu Adjei & Patrick K. Ofori-Danson & Joseph K. Asenso & Samuel K. Amponsah & Bazlul Khondker & Selim Raihan &, 2018. "Biophysical and Socioeconomic State and Links of Deltaic Areas Vulnerable to Climate Change: Volta (Ghana), Mahanadi (India) and Ganges-Brahmaputra-Meghna (India and Bangladesh)," Sustainability, MDPI, vol. 10(3), pages 1-22, March.
    14. Giannis Karagiannis & Vangelis Tzouvelekas, 2010. "Sectoral linkages and industrial efficiency: a dilemma or a requisition in identifying development priorities?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 45(1), pages 207-233, August.
    15. Susanne Fricke & Bianka Dettmer, 2014. "Backbone services as growth enabling factor - an Input-Output analysis for South Africa," Jena Economics Research Papers 2014-016, Friedrich-Schiller-University Jena.
    16. M. Alejandro Cardenete & Ferran Sancho, 2007. "A Computable General Equilibrium Approach to Hypothetical Extractions and Missing Links," UFAE and IAE Working Papers 710.07, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC), revised 29 Oct 2008.
    17. Yongke Yuan & Yixing Wang & Yuanying Chi & Feng Jin, 2020. "Identification of Key Carbon Emission Sectors and Analysis of Emission Effects in China," Sustainability, MDPI, vol. 12(20), pages 1-19, October.
    18. Lenzen, Manfred, 2003. "Environmentally important paths, linkages and key sectors in the Australian economy," Structural Change and Economic Dynamics, Elsevier, vol. 14(1), pages 1-34, March.
    19. Gustav Schachter & Tullio Gregori, 1998. "Assessing regional key sectors in Italy: A comparative approach," ERSA conference papers ersa98p293, European Regional Science Association.
    20. Alejandro CARDENETE & Patricia FUENTES SAGUAR & Clemente POLO, 2008. "Energy System and CO2 emissions: a SAM Analysis," EcoMod2008 23800022, EcoMod.
    21. Manuel Alejandro Cardenete & Pierre Boulanger & María del Carmen Delgado & Emanuele Ferrari & Robert M'barek, 2012. "An approach to describe the agri-food and other bio-based sectors in the European Union: Focus on Spain," JRC Research Reports JRC72097, Joint Research Centre.
    22. J. M. Albala-Bertrand, 1999. "Industrial Interdependence Change in Chile: 1960-90 a comparison with Taiwan and South Korea," International Review of Applied Economics, Taylor & Francis Journals, vol. 13(2), pages 161-191.
    23. João Carlos Lopes, 2011. "High Employment Generating Industries in Portugal. An Input-Output Approach," Working Papers Department of Economics 2011/24, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    24. B. Andreosso‐O'Callaghan & G. Yue, 2004. "Intersectoral Linkages and Key Sectors in China, 1987–1997," Asian Economic Journal, East Asian Economic Association, vol. 18(2), pages 165-183, June.
    25. Holz, Carsten A., 2011. "The unbalanced growth hypothesis and the role of the state: The case of China's state-owned enterprises," Journal of Development Economics, Elsevier, vol. 96(2), pages 220-238, November.

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