IDEAS home Printed from https://ideas.repec.org/a/spr/jecstr/v6y2017i1d10.1186_s40008-017-0079-6.html
   My bibliography  Save this article

Changes in domestic value added in China’s exports: a structural decomposition analysis approach

Author

Listed:
  • Yang Lianling

    (The Chinese Academy of Sciences)

  • Yang Cuihong

    (The Chinese Academy of Sciences
    University of the Chinese Academy of Sciences)

Abstract

China’s exports can be divided into three types: processing trade, normal trade of goods, and normal trade of services. Based on China’s non-competitive input–output table that captures the processing trade, we calculated domestic value added (DVA) in exports for 2002, 2007, and 2010. We then used structural decomposition analysis to examine six factors that could be the driving forces of changes in DVA for exports under the three kinds of trade in the periods 2002–2007 and 2007–2010. The results show that the six driving forces have different effects on exported DVA. Normal trade is the dominant contributor to the increased DVA of China’s exports. The increase in DVA generated by exports is due mainly to the expansion of export volume. The most effective way to increase exported DVA sustainably is to expand fabrication effects.

Suggested Citation

  • Yang Lianling & Yang Cuihong, 2017. "Changes in domestic value added in China’s exports: a structural decomposition analysis approach," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 6(1), pages 1-12, December.
    • Handle: RePEc:spr:jecstr:v:6:y:2017:i:1:d:10.1186_s40008-017-0079-6
    DOI: 10.1186/s40008-017-0079-6
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1186/s40008-017-0079-6
    File Function: Abstract
    Download Restriction: no
    File URL: https://libkey.io/10.1186/s40008-017-0079-6?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. Yuwan Duan & Cuihong Yang & Kunfu Zhu & Xikang Chen, 2012. "Does the Domestic Value Added Induced by China's Exports Really Belong to China?," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 20(5), pages 83-102, September.
    2. Judith M. Dean & K. C. Fung & Zhi Wang, 2011. "Measuring Vertical Specialization: The Case of China," Review of International Economics, Wiley Blackwell, vol. 19(4), pages 609-625, September.
    3. Erik Dietzenbacher & Bart Los, 2000. "Structural Decomposition Analyses with Dependent Determinants," Economic Systems Research, Taylor & Francis Journals, vol. 12(4), pages 497-514.
    4. Erik Dietzenbacher & Bart Los, 1998. "Structural Decomposition Techniques: Sense and Sensitivity," Economic Systems Research, Taylor & Francis Journals, vol. 10(4), pages 307-324.
    5. Wolfgang Koller & Robert Stehrer, 2010. "Trade Integration, Outsourcing And Employment In Austria: A Decomposition Approach," Economic Systems Research, Taylor & Francis Journals, vol. 22(3), pages 237-261.
    6. Bin Su & B. W. Ang, 2012. "Structural Decomposition Analysis Applied To Energy And Emissions: Aggregation Issues," Economic Systems Research, Taylor & Francis Journals, vol. 24(3), pages 299-317, March.
    7. Mark De Haan, 2001. "A Structural Decomposition Analysis of Pollution in the Netherlands," Economic Systems Research, Taylor & Francis Journals, vol. 13(2), pages 181-196.
    8. 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.
    9. Chen, Xikang & Cheng, Leonard K. & Fung, K.C. & Lau, Lawrence J. & Sung, Yun-Wing & Zhu, K. & Yang, C. & Pei, J. & Duan, Y., 2012. "Domestic value added and employment generated by Chinese exports: A quantitative estimation," China Economic Review, Elsevier, vol. 23(4), pages 850-864.
    10. Su, Bin & Ang, B.W., 2012. "Structural decomposition analysis applied to energy and emissions: Some methodological developments," Energy Economics, Elsevier, vol. 34(1), pages 177-188.
    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. Ping Hua, 2022. "How did China Raise its Manufacturing Domestic Value added in Exports through GVC Moving up?," Post-Print hal-03767822, HAL.
    2. Ryoko Morioka & Keisuke Nansai & Koji Tsuda, 2018. "Role of linkage structures in supply chain for managing greenhouse gas emissions," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 7(1), pages 1-21, December.
    3. Haoliang Zhu, 2019. "A quantitative analysis of global value chains: why has domestic value-added of China’s exports increased?," International Journal of Economic Policy Studies, Springer, vol. 13(2), pages 403-423, August.

    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. Tian, Kailan & Dietzenbacher, Erik & Yan, Bingqian & Duan, Yuwan, 2020. "Upgrading or downgrading: China's regional carbon emission intensity evolution and its determinants," Energy Economics, Elsevier, vol. 91(C).
    2. Kirill Muradov, 2021. "Structural decomposition analysis with disaggregate factors within the Leontief inverse," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 10(1), pages 1-17, December.
    3. Avelino, André F.T. & Franco-Solís, Alberto & Carrascal-Incera, André, 2021. "Revisiting the Temporal Leontief Inverse: New Insights on the Analysis of Regional Technological Economic Change," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 79-89.
    4. Duan, Yuwan & Jiang, Xuemei, 2017. "Temporal Change of China's Pollution Terms of Trade and its Determinants," Ecological Economics, Elsevier, vol. 132(C), pages 31-44.
    5. 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.
    6. 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.
    7. Duan, Yuwan & Yan, Bingqian, 2019. "Economic gains and environmental losses from international trade: A decomposition of pollution intensity in China's value-added trade," Energy Economics, Elsevier, vol. 83(C), pages 540-554.
    8. Hong, Jae Pyo & Byun, Jeong Eun & Kim, Pang Ryong, 2016. "Structural changes and growth factors of the ICT industry in Korea: 1995–2009," Telecommunications Policy, Elsevier, vol. 40(5), pages 502-513.
    9. Llop, Maria, 2017. "Changes in energy output in a regional economy: A structural decomposition analysis," Energy, Elsevier, vol. 128(C), pages 145-151.
    10. Arunima Malik & Jun Lan, 2016. "The role of outsourcing in driving global carbon emissions," Economic Systems Research, Taylor & Francis Journals, vol. 28(2), pages 168-182, June.
    11. Zeus Guevara & Oscar Córdoba & Edith X. M. García & Rafael Bouchain, 2017. "The Status and Evolution of Energy Supply and Use in Mexico Prior to the 2014 Energy Reform: An Input-Output Approach †," Economies, MDPI, vol. 5(1), pages 1-17, March.
    12. Robert C. Feenstra, 2017. "Statistics to Measure Offshoring and its Impact," NBER Working Papers 23067, National Bureau of Economic Research, Inc.
    13. Zeng, Lin & Xu, Ming & Liang, Sai & Zeng, Siyu & Zhang, Tianzhu, 2014. "Revisiting drivers of energy intensity in China during 1997–2007: A structural decomposition analysis," Energy Policy, Elsevier, vol. 67(C), pages 640-647.
    14. Wang, H. & Ang, B.W. & Su, Bin, 2017. "Multiplicative structural decomposition analysis of energy and emission intensities: Some methodological issues," Energy, Elsevier, vol. 123(C), pages 47-63.
    15. Olga Gavrilova & Raivo Vilu, 2015. "Estonia's Energy-related Greenhouse Gas Emissions in 1995-2011: A Structural Decomposition Analysis," Review of Economics & Finance, Better Advances Press, Canada, vol. 5, pages 67-84, February.
    16. Dietzenbacher, Erik & Kulionis, Viktoras & Capurro, Filippo, 2020. "Measuring the effects of energy transition: A structural decomposition analysis of the change in renewable energy use between 2000 and 2014," Applied Energy, Elsevier, vol. 258(C).
    17. Su, Bin & Ang, B.W. & Low, Melissa, 2013. "Input–output analysis of CO2 emissions embodied in trade and the driving forces: Processing and normal exports," Ecological Economics, Elsevier, vol. 88(C), pages 119-125.
    18. 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, Elsevier, vol. 69(C).
    19. Yan, Yunfeng & Li, Xiyuan & Wang, Ran & Zhao, Zhongxiu & Jiao, Aodong, 2023. "Decomposing the carbon footprints of multinational enterprises along global value chains," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 13-28.
    20. Radwan, Amira & Hongyun, Han & Achraf, Abdelhak & Mustafa, Ahmed M., 2022. "Energy use and energy-related carbon dioxide emissions drivers in Egypt's economy: Focus on the agricultural sector with a structural decomposition analysis," Energy, Elsevier, vol. 258(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:spr:jecstr:v:6:y:2017:i:1:d:10.1186_s40008-017-0079-6. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.