Changes in domestic value added in China’s exports: a structural decomposition analysis approach

  • Yang Lianling, Yang Cuihong
  • Published 2017


1 Background After China joined the WTO at the end of 2001, its foreign trade rapidly expanded. Foreign trade has become one of the most important driving forces for China’s rapid economic growth. According to the 2002 data released by the National Bureau of Statistics, China’s gross exports (including goods and services) were $365.0 billion, representing 25.1% of GDP. By 2012, the share of gross exports in China’s GDP grew slightly to 27.2%, but in absolute terms reached $2.2 trillion, or five times the total of 2002, for an average annual growth rate of 20% over those 10 years. This growth rate was much higher than that of GDP. Joining the WTO not only expanded China’s import and export volumes, it also changed the characteristics of China’s trade. The expansion of global trade in past decades is characterized by increasing international fragmentation of production, where production processes are sliced into many different tasks that can be done in different countries. As a result, the total value added is shared by many countries and regions instead of only the final exporters. With these changes in trade characteristics, the standard trade statistics on gross exports no longer give accurate measures of the true value that a country gained from foreign trade. Economists and economic policymakers Abstract

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Cite this paper

@inproceedings{Lianling2017ChangesID, title={Changes in domestic value added in China’s exports: a structural decomposition analysis approach}, author={Yang Lianling and Yang Cuihong}, year={2017} }