How much did China's emergence as "the world's factory" contribute to its national income
Duan, Yuwan1; Dietzenbacher, Erik2; Los, Bart2; Yang, Cuihong3,4
AbstractOver time, China upgraded its capabilities to such an extent that it requires less imported materials, components, and services to maintain its central role in the global production network. Consequently, the domestic value added content of its exports has increased over time. Still, value added includes profits, which are partly earned by foreign capital owners, many of whom have set up operations in export processing zones. Such profits can be repatriated, and do not directly enhance the living standards in China. This paper will focus on the extent to which China's exporting activities have contributed to its Gross National Income (GNI), which is a better indicator of economy-wide living standards than GDP. Our results, based on input-output analysis, show that the increase in the share of Chinese GNI of a yuan of Chinese exports from 2002 to 2007 was modest, despite a marked growth of Chinese GDP contained in such a yuan of exports. From 2007 to 2017, however, the continued increase of domestic value added per yuan of exports did actually translate into considerably higher contributions of exports to GNI. Decomposition analyses show that changes in the commodity composition of China's export bundle and changes in the shares of national income in value added were the main cause of the different patterns before and after the financial crisis.
KeywordChina Exports National income Input-output tables
Indexed BySCI
Funding ProjectNational Natural Science Foundation of China[71704195] ; National Natural Science Foundation of China[71988101] ; Major Program of National Fund of Philosophy and Social Science of China[19ZDA062] ; Program for Innovation Research in Central University of Finance and Economics, China
WOS Research AreaBusiness & Economics
WOS SubjectEconomics
WOS IDWOS:000701673100021
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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.Chinese Acad Sci, Acad Math & Syst Sci, Beijing, Peoples R China
4.Univ Chinese Acad Sci, Beijing, Peoples R China
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GB/T 7714
Duan, Yuwan,Dietzenbacher, Erik,Los, Bart,et al. How much did China's emergence as "the world's factory" contribute to its national income[J]. CHINA ECONOMIC REVIEW,2021,69:21.
APA Duan, Yuwan,Dietzenbacher, Erik,Los, Bart,&Yang, Cuihong.(2021).How much did China's emergence as "the world's factory" contribute to its national income.CHINA ECONOMIC REVIEW,69,21.
MLA Duan, Yuwan,et al."How much did China's emergence as "the world's factory" contribute to its national income".CHINA ECONOMIC REVIEW 69(2021):21.
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