All Title Author
Keywords Abstract

Value Added Decomposition of Chinese Provincial Exports and Its Assessment of True Comparative Advantage: A Case Study of Manufacturing in Jiangsu Province

DOI: 10.4236/jss.2019.73032, PP. 380-399

Keywords: Value Added Decomposition, Comparative Advantage of Value Added, Jiangsu Manufacturing, Regional Association, Value Chain

Full-Text   Cite this paper   Add to My Lib


The Sino-US trade conflict, the collapse of economic globalization and the reconstruction of global value chains have enhanced the necessity and urgency of building an open and connected, self-controllable, domestic value chain. Jiangsu is a major province and a large open province. The goal, path and measures for Jiangsu to build an independent and controllable advanced manufacturing system will have typical reference value. Based on the KWW trade value added decomposition framework, the World Input-Output Table (WIOT) and the inter-regional input-output tables of 30 provinces in China, Jiangsu’s return domestic value added, foreign value added, province value added and other provinces’ value added in Jiangsu’s manufacturing exports are estimated. Meanwhile, the regional linkages and changes of Jiangsu’s manufacturing exports with the rest of the provinces are also analyzed. The results show that the value added of imports from Jiangsu exports is higher than that of other provinces, which indicates that the “foreign circulation” of Jiangsu’s economy is stronger than “domestic circulation” though the situation is always changing in recent years. The Yangtze River Delta region is the core space for Jiangsu to build manufacturing industry chain. The Yangtze River Economic Belt and the Huaihai Economic Zone, which is the part of new Silk Road, are two important extended spaces for Jiangsu to build up NVC. Finally, On the basis of the decomposition of export value added, the industries with real comparative advantages in 16 major manufacturing industries in Jiangsu Province are evaluated. Both the advantages and disadvantages of Jiangsu’s value chain upgrading at the industrial level are unveiled.


[1]  Wang, L. (2000) China Foreign Investment Report 2000. Economic Science Press, Beijing.
[2]  Jiang, X. (2002) China’s Foreign Capital Economy. China Renmin University Press, Beijing.
[3]  Zhang, E. (2005) Globalization, Division of Factors and China’s Strategy. Xinhua Digest, Beijing.
[4]  Gereffi, G. (1999) International Trade and Industrial Upgrading in the Apparel Commodity Chains. Journal of International Economics, 48, 37-70.
[5]  Li, X. (2004) Thinking on “Trading Domestic Market for Technology” under the WTO Framework. China Industrial Economy, No. 4, 21-26.
[6]  Xu, J. (2006) On the Impoverished Growth of China’s Foreign Capital Economy. Journal of Nanjing Normal University (Social Science Edition), No. 6, 69-73.
[7]  Ping, X. (2007) Has the Market Exchanged Technology? International Economic Review, No. 5, 33-36.
[8]  Liu, Z. and Zhang, J. (2007) Forming, Breakthrough and Strategies of Captive Network in Developing Countries at Global Outsourcing System: Based on a Comparative Survey of GVC and NVC. China Industrial Economy, No. 5, 39-47.
[9]  Li, G. and Pan, W. (2016) How Do Domestic Value Chains Embed into Global Value Chains? Perspective from Value Added. China Industrial Economy, No. 7, 10-22.
[10]  Li, F. (2017) Imports, Local Economic Linkages and Reshape of National Value Chain. China Industrial Economy, No. 9, 25-43.
[11]  Hummels, D., Ishii, J. and Yi, K. (2001) The Nature and Growth of Vertical Specialization in World Trade. Journal of International Economics, 54, 75-96.
[12]  Koopman, R., Wang, Z. and Wei, S.J. (2012) Estimating Domestic Content in Exports When Processing Trade Is Pervasive. Journal of Development Economics, 99, 178-189.
[13]  Johnson, R.C. and Noguera, G. (2012) Accounting for Intermediates: Production Sharing and Trade in Value Added. Journal of International Economics, 86, 224-236.
[14]  Wang, Z., Wei, S.J. and Zhu, K.F. (2013) Quantifying International Production Sharing at the Bilateral and Sector Levels. NBER Working Paper No. 19677.
[15]  Koopman, R., Wang, Z. and Wei, S.J. (2014) Tracing Value Added and Double Counting in Gross Exports. American Economic Review, 104, 459-494.
[16]  Liu, Z. (2007) Non-Competitive Input-Occupied Output Model and Its Application: Perspective of Sino-US Trade Surplus. Chinese Social Sciences, No. 5, 91-103.
[17]  Deng, J. (2013) Evaluation of China’s Manufacturing Export Competitiveness from the Perspective of Value Added Trade. Journal of Zhongnan University of Economics and Law, No. 5, 40-72.
[18]  Wang, K. and Liao, H. (2016) Domestic Input, Intermediate Import and FDI Vertical Spillover—An Empirical Study Based on Non-Competitive Input-Output Table. Quantitative Economics and Economics Research, No. 1, 89-103.
[19]  Wang, L. (2018) Accounting of Bilateral Trade Gains in Global Value Chains: An Empirical Study on China Export to the US. International Trade Issues, No. 2, 81-91.
[20]  Zhang, S. (2010) Is Regional Integration a “Stepping Stone” or a Stumbling Block to the Domestic Value Chain? Finance and Trade Economy, No. 11, 118-124.
[21]  Wu, Q., Liu, Z. and Jiang, J. (2011) New Strategic Choice of Improving the Level of Opening up in Yangtze River Delta under Expanding Domestic Demand. Shanghai Economic Research, No. 10, 21-28.
[22]  Su, Q. (2016) Tracing Value Added in China’s Exports at the Provincial Level. Economic Research, No. 1, 84-113.
[23]  Li, F., Liu, S. and Tang, Z. (2016) Estimation of Value-Added in Provincial Exports and Its Impact on Industrial Structure. Tropical Geography, 36, 1026-1033.
[24]  Li, G. and Pan, W. (2016) How Domestic Value Chains Are Embedded in Global Value Chains: A Perspective of Value Added. China Industrial Economy, 7.
[25]  Ni, H. and Xia, J. (2016) The Role and Changes of China’s Region in the Global Value Chain. Finance and Trade Economy, 10.
[26]  Pan, W. and Li, G. (2018) National Value Chain and Global Value Chain in Chinese Regions: Regional Interaction and Value-Added Gains. Economic Research, No. 3, 171-186.


comments powered by Disqus

Contact Us


微信:OALib Journal