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GTAP Resource #5274

"Research on Division of Labor of China's Domestic Value Chain from the Perspective of Global Value Chain"
by Li, Shantong and Jianwu He

Opening up the market has played a very important role in the growth of China’s economy. The accession to the WTO accelerated the integration of Chinese economy into the global economy and accelerated China’s participation in global value chains (GVCs). However China has more than 30 provinces and autonomous regions and some provinces are even bigger than European countries. Most of foreign trade are concentrated the coastal areas due to geographical conditions and convenient infrastructure. However, the central and western provinces are rich in resources and serve the coastal regions with natural resource and raw materials, which will become intermediate input of export in coastal provinces. Provincial trade hierarchies and specialization enhance the inter-provincial economic linkage. It is important to understand how global value chains work within China and how they affect regional economic performance within China. To answer these questions, this paper collects regional input-output tables (2012)within China. In addition, multiregional input-output model is linked with global input-output model. Based on this integrated input-output models, this paper calculates how much regional value added is created from GVC trade. The study also investigates the participation of domestic provinces in global value chains of domestic value chain.
The paper draw the following conclusions: (1) The three economic circles (Jing Jin Ji Area, Yangtze River Delta, Pearl River Delta) have significant spillover effects on the surrounding areas. (2) The VS index and per capita show inverse U relationship. (3) Market size, capital density (intensity), infrastructure and the openness have positive effect on the participation in domestic value chain. (4) The dependence on export for each province from perspective of value chain can reflect the real condition, comparing to the traditional calculation method.

Resource Details (Export Citation) GTAP Keywords
Category: 2017 Conference Paper
Status: Published
By/In: Presented at the 20th Annual Conference on Global Economic Analysis, West Lafayette, IN, USA
Date: 2017
Created: Li, S. (4/14/2017)
Updated: Li, S. (4/14/2017)
Visits: 1,099
- Domestic policy analysis
- Other data bases and data issues
- Not Applicable

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