IDEAS home Printed from https://ideas.repec.org/a/sae/envira/v43y2011i12p2971-2991.html
   My bibliography  Save this article

Accounting for China's Import Growth: A Structural Decomposition for 1997–2005

Author

Listed:
  • Jiansuo Pei

    (School of International Trade and Economics, University of International Business and Economics, Beijing 100029, China)

  • Erik Dietzenbacher

    (Faculty of Economics and Business, University of Groningen, PO Box 800, 9700 AV Groningen, The Netherlands and Graduate University of the Chinese Academy of Sciences, Beijing 100049, China)

  • Jan Oosterhaven

    (Faculty of Economics and Business, University of Groningen, PO Box 800, 9700 AV Groningen, The Netherlands)

  • Cuihong Yang

    (Academy of Mathematics and Systems Science, Chinese Academy of Sciences, Beijing 100190, China)

Abstract

This paper applies structural decomposition analysis to Chinese input–output tables in order to disentangle and quantify the sources of China's import growth and China's growth in vertical specialization: that is, China's incorporation into the global supply chain. China's exports and the role of processing trade therein have increased substantially in the last decade. Yet, they account for only one third of China's import growth from 1997 to 2005. Instead, the volume growth of China's domestic final demand is found to be most important. Moreover, compared with other countries, the structural change in input–output coefficients and in the commodity composition of domestic final demand turns out to be surprisingly important. Looking only at vertical specialization, it is concluded that more than half of its growth, from 21% in 1997 to 30% in 2005, is due to the growth of China's import ratios.

Suggested Citation

  • Jiansuo Pei & Erik Dietzenbacher & Jan Oosterhaven & Cuihong Yang, 2011. "Accounting for China's Import Growth: A Structural Decomposition for 1997–2005," Environment and Planning A, , vol. 43(12), pages 2971-2991, December.
    • Handle: RePEc:sae:envira:v:43:y:2011:i:12:p:2971-2991
    DOI: 10.1068/a43396
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1068/a43396
    Download Restriction: no
    File URL: https://libkey.io/10.1068/a43396?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Jan Oosterhaven & Lourens Broersma, 2007. "Sector Structure and Cluster Economies: A Decomposition of Regional Labour Productivity," Regional Studies, Taylor & Francis Journals, vol. 41(5), pages 639-659.
    2. Sikhanwita Roy & Tuhin Das & Debesh Chakraborty, 2002. "A Study on the Indian Information Sector: An Experiment with Input-Output Techniques," Economic Systems Research, Taylor & Francis Journals, vol. 14(2), pages 107-129, June.
    3. repec:zbw:bofitp:2008_031 is not listed on IDEAS
    4. Shigemi Kagawa & Yuki Kudoh & Keisuke Nansai & Tomohiro Tasaki, 2008. "The Economic and Environmental Consequences of Automobile Lifetime Extension and Fuel Economy Improvement: Japan's Case," Economic Systems Research, Taylor & Francis Journals, vol. 20(1), pages 3-28.
    5. Aying Liu, 1998. "Sources of Structural Change and Output Growth of China's Economy: 1987-92," Economic Change and Restructuring, Springer, vol. 31(2), pages 95-116, May.
    6. Zhang, Youguo, 2009. "Structural decomposition analysis of sources of decarbonizing economic development in China; 1992-2006," Ecological Economics, Elsevier, vol. 68(8-9), pages 2399-2405, June.
    7. Robert Koopman & Zhi Wang & Shang-Jin Wei, 2008. "How Much of Chinese Exports is Really Made In China? Assessing Domestic Value-Added When Processing Trade is Pervasive," NBER Working Papers 14109, National Bureau of Economic Research, Inc.
    8. Diakoulaki, D. & Mandaraka, M., 2007. "Decomposition analysis for assessing the progress in decoupling industrial growth from CO2 emissions in the EU manufacturing sector," Energy Economics, Elsevier, vol. 29(4), pages 636-664, July.
    9. Jan Oosterhaven & Alex R. Hoen, 1998. "original: Preferences, technology, trade and real income changes in the European Union An intercountry decomposition analysis for 1975-1985," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 32(4), pages 505-524.
    10. Michael Lahr, 2001. "Reconciling Domestication Techniques, the Notion of Re-exports and Some Comments on Regional Accounting," Economic Systems Research, Taylor & Francis Journals, vol. 13(2), pages 165-179.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. J.M. Albala-Bertrand, 2018. "Industrial interdependence: China 1995–2010," China Economic Journal, Taylor & Francis Journals, vol. 11(2), pages 170-193, May.
    2. Jose-Miguel Albala-Bertrand, 2016. "Industrial Interdependence: China 1995-2010," Working Papers 802, Queen Mary University of London, School of Economics and Finance.
    3. Zhang, Zengkai & Lin, Jintai, 2018. "From production-based to consumption-based regional carbon inventories: Insight from spatial production fragmentation," Applied Energy, Elsevier, vol. 211(C), pages 549-567.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhang, Wei & Li, Ke & Zhou, Dequn & Zhang, Wenrui & Gao, Hui, 2016. "Decomposition of intensity of energy-related CO2 emission in Chinese provinces using the LMDI method," Energy Policy, Elsevier, vol. 92(C), pages 369-381.
    2. Kagawa, Shigemi & Nansai, Keisuke & Kudoh, Yuki, 2009. "Does product lifetime extension increase our income at the expense of energy consumption?," Energy Economics, Elsevier, vol. 31(2), pages 197-210.
    3. Rohman, Ibrahim Kholilul & Bohlin, Erik, 2014. "Decomposition analysis of the telecommunications sector in Indonesia: What does the cellular era shed light on?," Telecommunications Policy, Elsevier, vol. 38(3), pages 248-263.
    4. Nishijima, Daisuke, 2017. "The role of technology, product lifetime, and energy efficiency in climate mitigation: A case study of air conditioners in Japan," Energy Policy, Elsevier, vol. 104(C), pages 340-347.
    5. Wenmei Kang & Mou Wang & Ying Chen & Ying Zhang, 2022. "Decoupling of the Growing Exports in Foreign Trade from the Declining Gross Exports of Embodied Energy," IJERPH, MDPI, vol. 19(15), pages 1-12, August.
    6. Muhammad Shahbaz & Vassilios G. Papavassiliou & Amine Lahiani & David Roubaud, 2023. "Are we moving towards decarbonisation of the global economy? Lessons from the distant past to the present," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(3), pages 2620-2634, July.
    7. Jarreau, Joachim & Poncet, Sandra, 2012. "Export sophistication and economic growth: Evidence from China," Journal of Development Economics, Elsevier, vol. 97(2), pages 281-292.
    8. Xie, Rui & Wang, Fangfang & Chevallier, Julien & Zhu, Bangzhu & Zhao, Guomei, 2018. "Supply-side structural effects of air pollutant emissions in China: A comparative analysis," Structural Change and Economic Dynamics, Elsevier, vol. 46(C), pages 89-95.
    9. Marcel Fratzscher & Arnaud Mehl, 2014. "China's Dominance Hypothesis and the Emergence of a Tri‐polar Global Currency System," Economic Journal, Royal Economic Society, vol. 124(581), pages 1343-1370, December.
    10. Alyson C. Ma & Ari Van Assche & Chang Hong, 2010. "Global Production Networks and the People’s Republic of China’s Processing Trade," Working Papers id:3041, eSocialSciences.
    11. Benno Ferrarini, 2013. "Vertical Trade Maps," Asian Economic Journal, East Asian Economic Association, vol. 27(2), pages 105-123, June.
    12. Wang, Wenwen & Li, Man & Zhang, Ming, 2017. "Study on the changes of the decoupling indicator between energy-related CO2 emission and GDP in China," Energy, Elsevier, vol. 128(C), pages 11-18.
    13. Dmitry Alexandrovich Izotov, 2012. "The Foreign Trade of Domestic and External Sectors of the Chinese Economy," Spatial Economics=Prostranstvennaya Ekonomika, Economic Research Institute, Far Eastern Branch, Russian Academy of Sciences (Khabarovsk, Russia), issue 4, pages 49-66.
    14. Ling Yang & Michael L. Lahr, 2019. "The Drivers of China’s Regional Carbon Emission Change—A Structural Decomposition Analysis from 1997 to 2007," Sustainability, MDPI, vol. 11(12), pages 1-18, June.
    15. Willem Thorbecke, 2013. "Investigating China's Disaggregated Processed Exports: Evidence that Both the RMB and Exchange Rates in Supply Chain Countries Matter," The World Economy, Wiley Blackwell, vol. 36(10), pages 1245-1260, October.
    16. Los, Bart & Timmer, Marcel & Vries, Gaaitzen J. de, 2013. "Made in Europe? Trends in International Production Fragmentation," GGDC Research Memorandum GD-131, Groningen Growth and Development Centre, University of Groningen.
    17. Haddad, Eduardo & Lahr, Michael & Elshahawany, Dina & Vassallo, Moises, 2014. "Regional Analysis of Domestic Integration in Egypt," TD NEREUS 1-2015, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
    18. Gourdon, Julien & Monjon, Stéphanie & Poncet, Sandra, 2016. "Trade policy and industrial policy in China: What motivates public authorities to apply restrictions on exports?," China Economic Review, Elsevier, vol. 40(C), pages 105-120.
    19. Hu, Yi & Yin, Zhifeng & Ma, Jian & Du, Wencui & Liu, Danhe & Sun, Luxi, 2017. "Determinants of GHG emissions for a municipal economy: Structural decomposition analysis of Chongqing," Applied Energy, Elsevier, vol. 196(C), pages 162-169.
    20. Tunç, Gül İpek & Akbostancı, Elif & Türüt-Aşık, Serap, 2022. "Ecological unequal exchange between Turkey and the European Union: An assessment from value added perspective," Ecological Economics, Elsevier, vol. 192(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:envira:v:43:y:2011:i:12:p:2971-2991. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.