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Have China's resource-based regions improved in the division of GVCs? — Taking Shanxi Province as an example

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  • Fan, Xiaojia
  • Wu, Sanmang
  • Lei, Yalin
  • Li, Shantong
  • Li, Li

Abstract

Achieving sustainable development is a common challenge for all resource-based regions. With the deepening of globalization, the division of global value chains (GVCs) has become increasingly prevalent. And the question of how to achieve sustainable development in the GVCs is a crucial issue faced by resource-based areas. To study the situation of resource-based regions in the division of GVCs, we take Shanxi Province as an example, and comprehensively analyze its economic benefits and environmental costs by endogenously embedding China's domestic interregional input-output (IO) tables in international IO tables. and expanding the value-added trade accounting method. The results show that, from 2002 to 2012, there was a serious imbalance between economic benefits and environmental costs for Shanxi Province in the division of GVCs. Shanxi has gained fewer economic benefits in the division of GVCs, but has undertaken a lot of carbon emissions. As an inland province, Shanxi indirectly participates in the GVCs by providing intermediate products and raw materials to coastal provinces. Combined with the exports of value-added and carbon emissions, we have built an index of environmental inequity and found that the situation of Shanxi in respect of the GVCs has continued to deteriorate, which has essential implications for future policy making.

Suggested Citation

  • Fan, Xiaojia & Wu, Sanmang & Lei, Yalin & Li, Shantong & Li, Li, 2020. "Have China's resource-based regions improved in the division of GVCs? — Taking Shanxi Province as an example," Resources Policy, Elsevier, vol. 68(C).
    • Handle: RePEc:eee:jrpoli:v:68:y:2020:i:c:s0301420719310232
    DOI: 10.1016/j.resourpol.2020.101725
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