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

HKIMR Working Paper No.05/2015

64 Pages Posted: 17 Feb 2015

See all articles by Heiwai Tang

Heiwai Tang

Johns Hopkins University - Paul H. Nitze School of Advanced International Studies (SAIS); The University of Hong Kong - Faculty of Business and Economics; CESIfo; Kiel Institute for the World Economy

Wang Fei

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

Zhi Wang

United States International Trade Commission (USITC)

Multiple version iconThere are 3 versions of this paper

Date Written: February 17, 2015

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: Value-Added Trade, Global Supply Chain, Intra-National Trade, State Capitalism

JEL Classification: F01, C67, C82

Suggested Citation

Tang, Heiwai and Fei, Wang and Wang, Zhi, The Domestic Segment of Global Supply Chains in China Under State Capitalism (February 17, 2015). HKIMR Working Paper No.05/2015, Available at SSRN: https://ssrn.com/abstract=2566112 or http://dx.doi.org/10.2139/ssrn.2566112

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

The University of Hong Kong - Faculty of Business and Economics ( email )

Pokfulam Road
Hong Kong
China

CESIfo ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

Kiel Institute for the World Economy ( email )

P.O. Box 4309
Kiel, Schleswig-Hosltein D-24100
Germany

Wang Fei

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

United States International Trade Commission (USITC) ( email )

500 E St SW
Washington, DC 20436
United States

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