Economics at your fingertips  

Processing trade, foreign outsourcing and carbon emissions in China

Quanrun Chen, Andreas Löschel (), Jiansuo Pei, Glen P. Peters, Jinjun Xue and Zhongxiu Zhao

Structural Change and Economic Dynamics, 2019, vol. 49, issue C, 1-12

Abstract: China becomes major focus of international society for two factors: the largest trading country and the largest carbon emitter in the world, both of them are associated with China’s processing trade. Processing trade is a sort of foreign outsourcing trade which promoted China’s export as well as partially increased China’s CO2 emissions. However, China is conducting a trade reform aims at upgrade its trade structure by reducing the proportion of processing trade. This paper studies the role of processing trade in China’s export growth and CO2 emissions using an extended World Input Output Database (WIOD) with China’s micro data. In addition, we will assess the impact of China’s trade reform and economic slowdown to the structural change of export and its effect on processing trade and CO2 emissions in the future. We conclude that structural reform of export in China would likely involve other developing economies in global supply chains, and this may lead to a reduction in global emissions as those countries have lower emission intensities than China.

Keywords: Foreign outsourcing; Carbon emissions; Global supply chains; Input-output analysis; Processing trade (search for similar items in EconPapers)
JEL-codes: C67 F18 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

Structural Change and Economic Dynamics is currently edited by F. Duchin, H. Hagemann, M. Landesmann, R. Scazzieri, A. Steenge and B. Verspagen

More articles in Structural Change and Economic Dynamics from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2020-01-27
Handle: RePEc:eee:streco:v:49:y:2019:i:c:p:1-12