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Why has China's vertical specialization declined?
Duan, Yuwan1; Dietzenbacher, Erik2; Jiang, Xuemei3; Chen, Xikang4,5; Yang, Cuihong4,5
AbstractVertical specialization (VS) is quantified by the VS share, which measures the average import content per dollar of exports. A characteristic of China's export trade is its strong dependence on assembly and processing activities. To take proper account of this, China's VS shares should explicitly distinguish processing export production from other production. We estimate China's annual VS shares from 2000 to 2012the latest year for which a special input-output table is available that makes such an explicit distinction. We find that VS shares increased from 2000 to 2004 and subsequently started to decrease. To explore why it has declined, we introduce a new structural decomposition approach. We find that the decrease of the VS share appears to have been driven mainly by the substitution of imported intermediates by domestic products. This occurred in particular in the production of exports, which implies an upgrading of China's position in global value chains.
KeywordVertical specialization processing exports structural decomposition analysis China
Funding ProjectNational Natural Science Foundation of China[71473244] ; National Natural Science Foundation of China[71673269] ; National Natural Science Foundation of China[71704195] ; Beijing High-level Innovative and Entrepreneurial Talent Program of China[2017000026833ZS01] ; Beijing Social Science Fund of China[16YJC068]
WOS Research AreaBusiness & Economics
WOS SubjectEconomics
WOS IDWOS:000430093400002
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Document Type期刊论文
Corresponding AuthorDuan, Yuwan
Affiliation1.Cent Univ Finance & Econ, Sch Int Trade & Econ, Beijing, Peoples R China
2.Univ Groningen, Fac Econ & Business, Groningen, Netherlands
3.Capital Univ Econ & Business, Sch Econ, Beijing, Peoples R China
4.Chinese Acad Sci, Acad Math & Syst Sci, Beijing, Peoples R China
5.Univ Chinese Acad Sci, Sch Econ & Management, Beijing, Peoples R China
Recommended Citation
GB/T 7714
Duan, Yuwan,Dietzenbacher, Erik,Jiang, Xuemei,et al. Why has China's vertical specialization declined?[J]. ECONOMIC SYSTEMS RESEARCH,2018,30(2):178-200.
APA Duan, Yuwan,Dietzenbacher, Erik,Jiang, Xuemei,Chen, Xikang,&Yang, Cuihong.(2018).Why has China's vertical specialization declined?.ECONOMIC SYSTEMS RESEARCH,30(2),178-200.
MLA Duan, Yuwan,et al."Why has China's vertical specialization declined?".ECONOMIC SYSTEMS RESEARCH 30.2(2018):178-200.
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