PROCESSING TRADE BIASES THE MEASUREMENT OF VERTICAL SPECIALIZATION IN CHINA

Cuihong Yang, Erik Dietzenbacher, Jiansuo Pei, Xikang Chen, Kunfu Zhu and Zhipeng Tang
Authors registered in the RePEc Author Service: 裴建锁

Economic Systems Research, 2015, vol. 27, issue 1, 60-76

Abstract: Vertical specialization (VS) is often measured by the import contents of the exports, using an input-output (I-O) framework. Half of China's exports are processing exports, which largely depend on imported intermediate inputs and tie up upstream as well as downstream trade partners. Thus, one would expect to find strong VS for China. Using the 'ordinary' I-O tables, however, this is not the case. Because the production of processing exports is only a small part of total production, the average input structure in the I-O table hides the typical features of processing exports. Using adapted, tripartite I-O tables (for 2002 and 2007) in which the processing exports have been singled out, indeed reveals the expected strong VS in China.

Date: 2015
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Citations: View citations in EconPapers (19)

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DOI: 10.1080/09535314.2014.955463

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