China's domestic production networks

Quanrun Chen, Yuning Gao, Jiansuo Pei, Gaaitzen de Vries and Fei Wang

China Economic Review, 2022, vol. 72, issue C

Abstract: This paper examines China's domestic production networks. It uses VAT invoices to build inter-provincial input-output tables for 2002 and 2012. These are combined with population censuses to determine the location of workers involved in production. We document i) increased trade in intermediate inputs between provinces; ii) inter-provincial production fragmentation that differs by product; iii) substitution of domestic for foreign intermediates, resulting in increased domestic value added in exports. Information about the occupations of workers suggest that iv) richer coastal areas such as Beijing, Tianjin, and Shanghai specialize in R&D and marketing activities, whereas v) inland provinces specialize in production activities.

Keywords: China; Trade; Tasks; Specialization; Domestic production network (search for similar items in EconPapers)
JEL-codes: F14 F60 O19 R11 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:chieco:v:72:y:2022:i:c:s1043951x22000256

DOI: 10.1016/j.chieco.2022.101767

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