 Domestic segment of global value chains in China under state capitalism✰Heiwai Tang, Fei Wang and Zhi Wang () Journal of Comparative Economics, 2020, vol. 48, issue 4, 797-821 Abstract: This paper studies the relationship between the changing domestic segment of global value chains and the return of state capitalism in China. To this end, we propose a method to estimate an extended input-output (IO) table that tracks inter-sector transactions between different types of firms in a domestic economy. The method is an application of constrained optimization, which relies on basic information from a country's national IO table, as well as sector- and firm-level data. We also propose a way to construct bootstrapped standard errors for any global value chain (GVC) measures estimated from the extended IO tables. We then use the extended IO table to study the domestic segment of GVC in China. We find that, not only is state-owned enterprises’ (SOEs) domestic value-added to gross exports ratio much higher than those of other firms, but it also increased significantly from 1.2 in 2007 to 1.7 in 2010. Our findings suggest that, even after years of privatization, SOEs still play an important role in shaping China's exports. Keywords: Value-added trade; Global value chains; Quadratic optimization; Intra-national trade; State capitalism (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jcecon:v:48:y:2020:i:4:p:797-821 DOI: 10.1016/j.jce.2020.04.002 Access Statistics for this article Journal of Comparative Economics is currently edited by D. Berkowitz and G. Roland More articles in Journal of Comparative Economics from Elsevier |
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