Domestic value added and employment generated by Chinese exports: A quantitative estimation

Xikang Chen, Leonard K. Cheng, K.C. Fung, Lawrence J. Lau, Yun-Wing Sung, Kunfu Zhu, C. Yang, J. Pei and Y. Duan

China Economic Review, 2012, vol. 23, issue 4, 850-864

Abstract: We develop an input–output methodology to estimate how Chinese exports affected the country's total domestic value added (DVA) and employment in the years 2002 and 2007. For every US$1000 dollar of Chinese exports in 2007 (2002), DVA and employment are estimated to be US$591 (US$466) and 0.096 (0.242) person-year, respectively. To implement these estimations, we use hitherto unpublished Chinese government data to construct several completely new datasets, including an input–output table with separate input–output and employment-output coefficients for processing exports, non-processing exports, and output for domestic use. We hypothesize that, in comparison with the export sector, China's domestic sector would be relatively autarkic due to China's history of central planning. We expect that exports would generate less DVA and employment than output for domestic use. Processing exports, which are highly dependent on imported inputs, would similarly generate less DVA and employment than non-processing exports. Our findings support these expectations. For both 2002 and 2007, the DVA and employment effects of domestic final demand were higher than those of non-processing exports, which were in turn higher than those of processing exports. However, with the progress of economic reforms, we found that the total DVAs of exports and domestic final demand have converged from 2002 to 2007.

Keywords: Chinese exports; Domestic value added; Employment; Input–output analysis (search for similar items in EconPapers)
JEL-codes: F14 P33 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (64)

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Working Paper: Domestic Value Added and Employment Generated by Chinese Exports: A Quantitative Estimation (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:chieco:v:23:y:2012:i:4:p:850-864

DOI: 10.1016/j.chieco.2012.04.003

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