The Domestic Segment of Global Supply Chains in China Under State Capitalism
HKIMR Working Paper No.05/2015
64 Pages Posted: 17 Feb 2015
There are 3 versions of this paper
The Domestic Segment of Global Supply Chains in China Under State Capitalism
The Domestic Segment of Global Supply Chains in China Under State Capitalism
The Domestic Segment of Global Supply Chains in China Under State Capitalism
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: Suggested Citation
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