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Domestic Value Added and Employment Generated by Chinese Exports: A Quantitative Estimation


  • Chen, Xikang
  • Cheng, Leonard
  • Fung, K.C.
  • Lau, Lawrence J.
  • Sung, YunWing
  • Yang, C.
  • Zhu, K.
  • Pei, J.
  • Tang, Z.


We develop an input-output methodology to estimate how Chinese exports affect the country’s total domestic value added (DVA) and employment for 1995 and 2002. Total DVA generated by exports is obtained by subtracting all direct and indirect imported intermediate goods from the gross value of exports, and total employment is obtained by adding all direct and indirect employment generated by exports. To implement these estimations, we use hitherto unpublished Chinese government data to construct several completely new datasets, including an input-output table with separate input-output and employment-output coefficients for processing and non-processing exports. In 2002 (1995), for every US$1,000 dollar of Chinese exports, DVA and employment are estimated to be US$466 (US$545) and 0.242 (0.375) person-year, respectively.

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  • Chen, Xikang & Cheng, Leonard & Fung, K.C. & Lau, Lawrence J. & Sung, YunWing & Yang, C. & Zhu, K. & Pei, J. & Tang, Z., 2008. "Domestic Value Added and Employment Generated by Chinese Exports: A Quantitative Estimation," MPRA Paper 15663, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:15663

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    References listed on IDEAS

    1. Ng, Francis & Yeats, Alexander, 2003. "Major trade trends in East Asia : what are their implications for regional cooperation and growth," Policy Research Working Paper Series 3084, The World Bank.
    2. Elhanan Helpman & Marc J. Melitz & Stephen R. Yeaple, 2004. "Export Versus FDI with Heterogeneous Firms," American Economic Review, American Economic Association, vol. 94(1), pages 300-316, March.
    3. Dani Rodrik, 2006. "What's So Special about China's Exports?," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 14(5), pages 1-19.
    4. Mary Amiti & Caroline Freund, 2010. "The Anatomy of China's Export Growth," NBER Chapters,in: China's Growing Role in World Trade, pages 35-56 National Bureau of Economic Research, Inc.
    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. Robert C. Feenstra & Chang Hong, 2010. "China's Exports and Employment," NBER Chapters,in: China's Growing Role in World Trade, pages 167-199 National Bureau of Economic Research, Inc.
    7. Ng, Francis & Yeats, Alexander, 1999. "Production sharing in East Asia : who does what for whom, and why?," Policy Research Working Paper Series 2197, The World Bank.
    8. Xikang Chen & Ju-e Guo & Cuihong Yang, 2005. "Extending the input-output model with assets," Economic Systems Research, Taylor & Francis Journals, vol. 17(2), pages 211-225.
    9. 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.
    10. Yun-Wing Sung, 2007. "Made in China: From World Sweatshop to a Global Manufacturing Center?," Asian Economic Papers, MIT Press, vol. 6(3), pages 43-72, Fall.
    11. Peter K. Schott, 2008. "The relative sophistication of Chinese exports," Economic Policy, CEPR;CES;MSH, vol. 23, pages 5-49, January.
    12. Hummels, David & Ishii, Jun & Yi, Kei-Mu, 2001. "The nature and growth of vertical specialization in world trade," Journal of International Economics, Elsevier, vol. 54(1), pages 75-96, June.
    13. Barry Naughton, 2007. "The Chinese Economy: Transitions and Growth," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262640643, January.
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    More about this item


    Input-output tables; Chinese exports; employment; domestic value added;

    JEL classification:

    • P33 - Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid
    • P45 - Economic Systems - - Other Economic Systems - - - International Linkages
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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