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China's regional economies and value chains : an interregional input-output analysis

Author

Listed:
  • Meng, Bo
  • Zhang, Yaxiong
  • Guo, Jiemin
  • Fang, Yong

Abstract

Attempts to understand China’s role in global value chains have often noted the case of Apple's iPhone production, in particular the fact that the value added during the Chinese portion of the iPhone’s supply chain is no more than 4%. However, when we examine the Chinese economy as a whole in global production networks, China’s share in total induced value added by China’s exports of final products to the USA is about 75% in 2005. This leads us to investigate how Chinese value added is created and distributed not only internationally but also domestically. To elucidate the increasing complexity of China’s domestic production networks, this paper focuses on the measure of Domestic Value Chains (DVCs) across regions and their linkages with global markets. By using China’s 1997 and 2007 interregional input-output tables, we can understand in detail the structural changes in domestic trade in terms of value added, as well as the position and degree of participation of different regions within the DVCs.

Suggested Citation

  • Meng, Bo & Zhang, Yaxiong & Guo, Jiemin & Fang, Yong, 2012. "China's regional economies and value chains : an interregional input-output analysis," IDE Discussion Papers 359, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  • Handle: RePEc:jet:dpaper:dpaper359
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    File URL: https://ir.ide.go.jp/?action=repository_action_common_download&item_id=37815&item_no=1&attribute_id=22&file_no=1
    File Function: First version, 2012
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    References listed on IDEAS

    as
    1. Neary, J. Peter, 2009. "Trade costs and foreign direct investment," International Review of Economics & Finance, Elsevier, vol. 18(2), pages 207-218, March.
    2. Mitsuyo Ando & Fukunari Kimura, 2005. "The Formation of International Production and Distribution Networks in East Asia," NBER Chapters,in: International Trade in East Asia, NBER-East Asia Seminar on Economics, Volume 14, pages 177-216 National Bureau of Economic Research, Inc.
    3. Blonigen, Bruce A. & Davies, Ronald B. & Waddell, Glen R. & Naughton, Helen T., 2007. "FDI in space: Spatial autoregressive relationships in foreign direct investment," European Economic Review, Elsevier, vol. 51(5), pages 1303-1325, July.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Meng, Bo & Xue, Jinjun & Feng, Kuishuang & Guan, Dabo & Fu, Xue, 2013. "China’s inter-regional spillover of carbon emissions and domestic supply chains," Energy Policy, Elsevier, vol. 61(C), pages 1305-1321.
    2. Meng, Bo & Wang, Zhi & Koopman, Robert, 2013. "How are global value chains fragmented and extended in China's domestic production networks?," IDE Discussion Papers 424, Institute of Developing Economies, Japan External Trade Organization(JETRO).

    More about this item

    Keywords

    China; International trade; International competition; Local economy; Trade in value added; Value chain; Vertical specialization; Comparative advantage;

    JEL classification:

    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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