Research on Division of Labor of China’s Domestic Value Chain From the Global Value Chain Perspective

2018
Shantong Li, Jianwu He

With the development of infrastructure and information and communication technology, the global division of labor has deepened. It developed gradually from the separation of production and consumption to inter-industry and intra-industry, and further to the current intra-product division of labor or the division of production. From the early division within a smaller region to the present division among different countries, more and more enterprises have been engaged in investment, production, and trade activities on a global scale. At present, about 80 % of global trade is transnational trade (UNCTAD, 2013). At the same time, with the development of regional integration and the continuation of all-around “opening up”, the economic ties between different regions within a country and between domestic regions and foreign countries are becoming closer and closer. From 1987 to 2007, the average inter-provincial trade dependence in the domestic provinces increased by nearly 20 percentage points, and the economic and trade links between the provinces were continuously strengthened (Zhang, 2013). What’s more, the export proportion of the central and western regions in total in the country rose from 6.7 % in 2002 to more than 13 % in 2016 from January to August. The economic development of any region within a country depends not only on its own domestic environment, but even more so on its role and status in the entire global production network. So, we need to understand regional economic development from the perspective of the global value chain. There is a high degree of heterogeneity between regions in China, so research in the regional level has a stronger practical significance to promote the transformation of China’s economy. In recent years, the gradual emergence of trade in value-added measurement and decomposition methods based on the input-output model is providing a new set of theoretical systems for the study of the global value chain. It is also changing people’s understanding of economic ties between countries based on traditional balance of payments and trade statistics. Based on this theoretical background, this paper attempts to construct the fusion analysis framework of the domestic value chain and the global value chain by embedding the domestic regional input-output table in the global input-output table. This is based on the value-added trade calculation and decomposition framework proposed by Wang, Wei, & Zhu (2015) in order to solve the current problem of fracture analysis for the domestic value chain and the global value chain. The specific research arrangements in this paper are as follows: in the second section, we will comb the current literature on the domestic value chain based on the input-output model and find out the shortcomings of the current research; in the third section we introduce the methods and analysis framework adopted in this study; the fourth section will analyze the trade pattern, value chain participation, and industry competitiveness; and finally, we end with the corresponding research conclusions.

Atslēgas vārdi
inforum, multisectoral modelling, applied models, macroeconomy, input-output model, trade pattern, value chain participation, industry competitiveness
DOI
10.7250/9789934221194.008
Hipersaite
https://ebooks.rtu.lv/catalog/ekonomika-un-vadibzinatne/494/

Li, S., He, J. Research on Division of Labor of China’s Domestic Value Chain From the Global Value Chain Perspective. No: D.S.Meade, V.Ozoliņa, red. Applied Macroeconomic Multisectoral Modeling. Riga: RTU Press, 2018. 136.-156.lpp. ISBN 978-9934-22-118-7. e-ISBN 978-9934-22-119-4. Pieejams: doi:10.7250/9789934221194.008

Publikācijas valoda
English (en)