Construction of a Global Input-Output Table Embedding Chinese Provincial Multi-Regional Input-Output Table

Chen Pan, Lingling Zhou, Jianwu He, Shantong Li, Xuefan Guo and Kunfu Zhu

No 333305, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: As the global value chain (GVC) continues to extend to the sub-national regions within the economies, the domestic value chain between Chinese provinces is also nesting into the global value chain. This study aims to construct a global input-output table with Chinese provincial multi-regional input-output (MRIO) table embedded. Three database sources are used: (1) global input-output table of 2017 sourced from the GTAP database; (2) Chinese provincial MRIO table of 2017; (3) China’s custom data distinguishing domestic provinces and destination countries of 2017. The construction process is as follows. First of all, we construct a China’s provincial MRIO, which contains 31 Chinese mainland provinces and 42 sectors. Secondly, the two sector classifications of China’s provincial MRIO and GTAP IO table are mapped, and according to the strength of economic linkages between China and the other economies, the regions in GTAP database are merged into 15 economies. Thirdly, the Chinese customs data are mapped into the consistent sector classification we get above. Finally, we embed the Chinese provincial MRIO table into the global input-output table by adjusting China’s provincial MRIO table with the GTAP global input-output table used as the controlling numbers. Thus, we could get a Global Input-Output Table including Chinese provinces.

Keywords: International; Relations/Trade (search for similar items in EconPapers)
Date: 2021
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