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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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publication
Distinguishing China's processing trade in the world input-output table and quantifying its effects

Distinguishing processing trade is crucial to national input-output table-based research on China's international trade. This paper further investigates the importance of distinguishing China's processing trade in multicountry input-output table-based studies. We focus on the bias in China's bilateral trade in value added caused by China's undistinguished processing trade. We construct a product-by-product world input-output table capturing China's processing trade based on the World Input-Output Database. Empirical studies show that, if China's processing trade is undistinguished, the profile of China's bilateral trade in value added would be seriously distorted; China's bilateral net trade in value added with some economies, such as Japan, Korea and Taiwan, would be significantly underestimated, while it would be significantly overestimated for some other economies, such as the United States. Distinguishing processing trade in multicountry input-output tables is also crucial when China's bilateral trade in value added is considered.

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publication
Revisiting the Global Net Carbon Dioxide Emission Transfers by International Trade: The Impact of Trade Heterogeneity of China

To revisit global net carbon dioxide (CO2) emissions transfers by international trade for year 2007, this study employs a new world‐wide, multiregional input‐output (MRIO) table in which China's production is separated into domestic use, processing exports, and nonprocessing exports. The results show that processing exports in China involves relatively lower CO2 emissions than other production types for the same output levels. Therefore, if processing exports are not appropriately distinguished, net CO2 emission exports from China to other regions will be distorted; the relative bias occasionally reaches 15%. Net emission exports from regions other than China are also distorted, particularly for regions that use considerable Chinese processing exports as intermediates, such as the United States, European Union (EU), and East Asia. Given that processing exports prevail in a large number of developing countries, such as Mexico and Vietnam, one should carefully interpret measurements of net emission transfers by international trade by utilizing the ordinary world‐wide MRIO model.

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publication
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.

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