Cuihong Yang, Erik Dietzenbacher, Jiansuo Pei, Xikang Chen, Kunfu Zhu, Zhipeng Tang · 2014
Economic Systems Research · Informa UK Limited

Processing Trade Biases the Measurement of Vertical Specialisation in China

Vertical specialization (VS) is often measured by the import contents of the exports, using an input–output (I–O) framework. Half of China’s exports are processing exports, which largely depend on imported intermediate inputs and tie up upstream as well as downstream trade partners. Thus, one would expect to find strong VS for China. Using the ‘ordinary’ I–O tables, however, this is not the case. Because the production of processing exports is only a small part of total production, the average input structure in the I–O table hides the typical features of processing exports. Using adapted, tripartite I–O tables (for 2002 and 2007) in which the processing exports have been singled out, indeed reveals the expected strong VS in China.

Full publication is available on: DOI 10.1080/09535314.2014.955463

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Cuihong Yang

Cuihong Yang
Chinese Academy of Sciences

Cuihong Yang is professor at the Chinese Academy of Sciences, where she also obtained her PhD. Her main research areas are input-output analysis, economic forecasting and global value chains. She was vice president of the International Input-Output Association(2013-2018) and is the executive vice president of the Chinese Input-Output Society (2016 onwards). Besides, she is member of the editorial board of the Journal of Systems Science and Complexity and of Economic Systems Research.

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