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Estimating Chinese Interprovincial OutPut Spillovers with Provincial Input-Output Tables

Author

Listed:
  • Yong HE

    (Centre d'Etudes et de Recherches sur le Développement International)

  • Hong ZHOU

Abstract

This paper aims at estimating productivity improvement of Chinese 17 relatively backward provinces in manufactures through importing manufactured intermediates from advanced provinces on the basis of just published 2002 national and provincial input-output tables. As Chinese regional inequality remains large, North-South spillover models of trade are appropriate to guide this study. Applying reliable methods to approximate net interprovincial imports by province and sector and the allocation of imported manufactured inputs among sectors within each province, we use a Cob-Douglas production function incorporating Dixit-Stiglitz type increasing returns to variety to deal with the manufactured inputs, and treat the output spillovers as one part of total factor productivity. According to our estimations, as expected, interprovincial imports of manufactured inputs have significant impacts on industrial sectors as well on all sectors of these provinces.

Suggested Citation

  • Yong HE & Hong ZHOU, 2010. "Estimating Chinese Interprovincial OutPut Spillovers with Provincial Input-Output Tables," Working Papers 201037, CERDI.
    • Handle: RePEc:cdi:wpaper:1224
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    More about this item

    Keywords

    Chinese interprovincial trade; North-South spillovers; input-output tables; regional inequality; imported intermediates;
    All these keywords.

    JEL classification:

    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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