SHE Qunzhi, JIA Jingxue：Market Structure of Added Value of China's Exports and Dependency Relationship

Abstract：Based on the GVC decomposition for gross exports, we further decompose the domestic and foreign added value in China's exports according to the destination country of exports and source country of imports to study the country distribution structure of the various added value components in China's exports. Then, we study China's dependency relationship with other countries in the global value chain by constructing three indicators:“upstream dependence”,“downstream impacts degree” and “value-added exports dependence”. The results show that during 1995-2011, the share of added value in gross exports is approximately 79.76% on average, and generally shows a downward trend. Among them, the products exported to the United States, European Union, Japan and other developed countries make the greatest contribution to the added value in export in China. In the global value chain, China's participation as the downstream producer is higher than the participation as the upstream supplier, and the gap between the two participations has expanded. This shows that China is mainly playing a role of downstream producer to participate in the global value chain, and is still in the low end of the global value chain. Whether the upstream and downstream dependence, or final demand dependence, China's dependence on the European Union, the United States and other developed countries are high. However, as China's participation in global value chains get further deepened, the upstream dependence and final demand dependence on the developed countries show a downward trend.

Key words： Added Value of Exports    Market Structure    Upstream Dependence    Downstream Dependence   Final Demand Dependence

source:Finance & Trade Economics ,No.8,2015