Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/100424 
Year of Publication: 
2014
Series/Report no.: 
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2014: Evidenzbasierte Wirtschaftspolitik - Session: China's Growing Role in World Trade No. E12-V3
Publisher: 
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft, Kiel und Hamburg
Abstract: 
In the 2000s, China's WTO entry constituted a major trade shock. In this paper, we analyze its eff ects on trade and value chains. The fragmentation of the global value chain makes it hard to disentangle who produces for whom. Value added trade contains this information. We build a multi-sector gravity model of the Eaton and Kortum (2002) type with inter-sectoral linkages that gives rise to a gravity equation for value added trade flows. As in Koopman et al. (forthcoming), exports can be decomposed into value added exports, exports of foreign value added and double counting. We construct a panel database of value added trade for 40 countries and the years 1995-2009 from the World Input-Output database. With WIOD and tariff data, we estimate the gravity model's key parameters. The simulation then hypothetically sets tari s w.r.t. China back to their pre-accession levels. We find that China's WTO entry strengthend the Asian production network. Chinese value added in exports reduced and increasingly foreign value added - most prominently from Japan and Korea - is assembled and exported.
JEL: 
F13
F14
F17
Document Type: 
Conference Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.