China's Industrial Structure and its Changes in Recent Years: An Analysis of the 1997-2005 Input-Output Tables

Hitoshi Sasaki and Satoko Ueyama
Additional contact information
Hitoshi Sasaki: Bank of Japan
Satoko Ueyama: Bank of Japan

No 09-E-2, Bank of Japan Working Paper Series from Bank of Japan

Abstract: This paper investigates the features and recent changes of China's industrial structure using input-output tables for different periods from 1997 to 2005. We find that the domestic production inducement coefficients of China's material and machinery industries have declined while the import coefficients of these industries have risen. This indicates that China has strengthened its position as "the factory of the world", in which it imports parts and materials, processes or assembles them, and then ships the final products. It also indicates that China's resource-securing activities have increasingly intensified because of the increasing demand for resources and energy associated with its high economic growth. We then calculate the degree of China's income dependence on foreign demand, which shows a dramatic rise, especially after 2002, shortly after China joined the WTO and embarked on liberalizing a wide range of markets including those of both goods and services. Lastly, it is shown that the labor input inducement coefficient for the agriculture sector is by far the largest and that the rates of labor input inducement differ significantly by industry depending on whether they are labor intensive or not. Labor input inducement coefficients have also been on the decline in most of the industries reflecting the improvement of labor productivity. Behind this trend is the migration of rural workers to urban areas and increased capital equipment especially in the manufacturing sector.

Keywords: input-output table; production inducement coefficient; degree of income dependence; labor input inducement coefficient (search for similar items in EconPapers)
JEL-codes: C67 O53 (search for similar items in EconPapers)
Date: 2009-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.boj.or.jp/en/research/wps_rev/wps_2009/data/wp09e02.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.boj.or.jp/en/research/wps_rev/wps_2009/data/wp09e02.pdf [301 Moved Permanently]--> https://www.boj.or.jp/en/research/wps_rev/wps_2009/data/wp09e02.pdf)

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: https://EconPapers.repec.org/RePEc:boj:bojwps:09-e-2

Access Statistics for this paper

More papers in Bank of Japan Working Paper Series from Bank of Japan Contact information at EDIRC.
Bibliographic data for series maintained by Bank of Japan ().