China and the World Economy:A Global Value Chain Perspective on Exports, Incomes and Jobs
Bart Los and
Gaaitzen de Vries
No GD-128, GGDC Research Memorandum from Groningen Growth and Development Centre, University of Groningen
Based on a new dataset of world input-output tables we analyze the impact of foreign demand on Chinese factor incomes and employment since 1995. We extend the global input-output methodology introduced by Johnson and Noguera (2012) and find that exports of value added rapidly increased after 2001, peaking at 28% of GDP in 2006. During this period the increase in foreign demand added about 70 million jobs, predominantly for unskilled workers. Due to strong domestic inter-industry linkages more than half of these jobs were created outside the manufacturing sector. Foreign demand generated income for domestic capital rather than for labor, as wages remained low. The current global economic crisis strengthens the process of reorientation of the Chinese economy, which appears to have started in 2006 already. Domestic final demand for non-tradables has become the main source of growth and the sources of export income steadily shifted away from mature markets to emerging markets.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:gro:rugggd:gd-128
Access Statistics for this paper
More papers in GGDC Research Memorandum from Groningen Growth and Development Centre, University of Groningen Contact information at EDIRC.
Bibliographic data for series maintained by Hanneke Tamling (). This e-mail address is bad, please contact .