The Domestic Segment of Global Supply Chains in China Under State Capitalism

66 Pages Posted: 20 Apr 2016

See all articles by Heiwai Tang

Heiwai Tang

Johns Hopkins University - Paul H. Nitze School of Advanced International Studies (SAIS); CESIfo

Fei Wang

University of International Business and Economics (UIBE) - School of International Trade and Economics

Zhi Wang

U.S. International Trade Commission

Multiple version iconThere are 3 versions of this paper

Date Written: June 1, 2014

Abstract

This paper proposes methods to incorporate firm heterogeneity in the standard input-output table-based approach to portray the domestic segment of global value chains in a country. The analysis uses Chinese firm census data for the manufacturing and service sectors, along with constrained optimization techniques. The conventional input-output table is split into sub-accounts, which are used to estimate direct and indirect domestic value added in exports of different types of firms. The analysis finds that in China, state-owned enterprises and small and medium domestic private enterprises have much higher shares of indirect exports and ratios of value-added exports to gross exports compared with foreign-invested and large domestic private firms. Based on input-output tables for 2007 and 2010, the paper finds increasing value-added export ratios for all firm types, particularly for state-owned enterprises. It also finds that state-owned enterprises are consistently more upstream while small and medium domestic private enterprises are consistently more downstream within industries. These findings suggest that state-owned enterprises still play an important role in shaping China's exports.

Keywords: Economic Theory & Research, Free Trade, Microfinance, Trade Policy, Investment and Investment Climate

Suggested Citation

Tang, Heiwai and Wang, Fei and Wang, Zhi, The Domestic Segment of Global Supply Chains in China Under State Capitalism (June 1, 2014). World Bank Policy Research Working Paper No. 6960. Available at SSRN: https://ssrn.com/abstract=2461016

Heiwai Tang (Contact Author)

Johns Hopkins University - Paul H. Nitze School of Advanced International Studies (SAIS) ( email )

1740 Massachusetts Avenue, NW
Washington, DC 20036-1984
United States

CESIfo ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

Fei Wang

University of International Business and Economics (UIBE) - School of International Trade and Economics ( email )

10 East Huixin Street
Chaouang District
Beijing, 100029
China

Zhi Wang

U.S. International Trade Commission ( email )

500 E Street, SW
Washington, DC 20436
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
239
rank
74,800
Abstract Views
1,252
PlumX Metrics