Decomposition of global value chains for equipment exports of China
Document Type
Article
Publication Date
1-1-2018
Abstract
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.
Keywords
China, Decomposition, Equipment industry, Global value chains, Value added
Divisions
FacultyofEconomicsAdministration
Publication Title
International Journal of China Studies
Volume
9
Issue
1
Publisher
Institute of China Studies, University of Malaya