Decomposition of global value chains for equipment exports of China

Zhang, Wei and Yong, Chen Chen (2018) Decomposition of global value chains for equipment exports of China. International Journal of China Studies, 9 (1). pp. 79-96. ISSN 2180-3250,

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Traditional trade statistics on gross trade is clouded by double counting of trade in intermediates across national borders. The value-added statistical method provides clarity to such situations which decomposes the global value chains (GVC) of exports. We have examined China’s equipment manufacturing products trade by adopting value-added statistical method based on Wang, Wei and Zhu (2013). The decomposition results show a dominant share of domestic value-added (DVA), a small share of foreign value-added (FVA), a tiny share of returned domestic value-added (RDV), and pure double counting (PDC). This indicates that the exports of China’s equipment products are mainly final products. Moreover, the results of participation and position indices show a stable participation trend and an upward trend in GVC respectively. Comparing with five selected countries, China’s equipment industry participation in GVC is moderate and belongs to downstream industries.

Item Type: Article
Uncontrolled Keywords: China; Decomposition; Equipment industry; Global value chains; Value added
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HC Economic History and Conditions
Divisions: Faculty of Economics & Administration
Depositing User: Ms. Juhaida Abd Rahim
Date Deposited: 28 Jan 2019 00:52
Last Modified: 28 Jan 2019 00:52

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