The Analysis on the Relationship between Processing Trade and Economic Growth in China

With gradually deepening of international division and frequently developing of transnational corporations, processing trade has been a major trend in international trade. This paper mainly Seeks for the practical and theoretical, supports ,to processing, trade. Meanwhile, it ,shows the developing conditions of processing trade in the world and in China, and analyzes the relationship between processing trade and economic growth in China by linear regression analysis in order to find,the problems and give some suggestions.

The Negative Growth of Processing Trade Continued

China’s foreign trade from January to August According to Customs figures,China’s total import and export in August reached 2.04 trillion yuan,down 9.7%year on year(the same below).Export was 1.2 trillion yuan,down 6.1%,and import 0.84 trillion yuan,down 14.3%.Trade surplus was 368 billion yuan,an increase of 20.1%.In terms of the U.S.dollar,the total import and export in August reached US$333.5 billion,

China's Processing Trade Development for Mechanical and Electrical Products

Since the launch of the economic reform and opening to the outside world, China has seen rapid growth in its export of mechanical and electrical products, with its export

Processing Trade Banned Commodities announced

The new catalogue of processing trade-banned commodities was announced recently.The announcement was executed since November 22 of 2006.The Catalogue will be adjusted according to related policies of the state.

On Deepening Reform of Processing Trade Regulations

The processing trade has, since 1996, taken half of the total import and export trade value for a consecutive six years. Despite the impact and influence of the Asian financial crisis, it has maintained a momentum of steady growth. In the five years from 1997 to 2001, import and export value through the processing trade grew at an annual average rate of 10.5 percent, with exports growing at an annual average rate of 11.8 percent. This good growth momentum continued into

Estimation of the embodied carbon in China's wood products trade using input–output methodology

This study calculates the embodied carbon in imports,exports,net exports,and the processing trade of China's wood product sector between 2001 and 2016 using a non-competitive input-output(I-O)model.The results demonstrate that embodied carbon showed a decreasing trend between 2001 and 2016.Embodied carbon was lowest in wood furniture imports and highest in paper and paperboard imports.The embodied carbon in sawnwood and veneer sheet exports was the lowest and paper and paperboard exports was the highest.The embodied carbon in the processing trade of paper and paperboard was the highest.To reduce the embodied carbon in China's wood products,the government should promote technological transformation and upgrading and encourage the implementation of green technology innovation.

“入世”以后高新技术产业发展趋势与应对

Joining in WTO will bring both positive and negative impacts on all kinds of industries in Nanjing. Nanjing should hold the chance of developing hi - technique industries, aborb more international technology transform, develop hi - technique processing trade, and speed up hi - techique independent innovation and R&D.

The Key Driver of China’s New Economic Development Pattern:A Major Power’s Flying Geese Paradigm

This paper examines China’s flying geese paradigm that serves as a key driver of a new pattern of the country’s economic development.Our results suggest that such a major power’s flying geese paradigm has taken shape in the aftermath of the global financial crisis in 2008.However,this paradigm has provincial heterogeneity in that industrial relocation varies across provinces.For instance,China’s central and western regions have shown differences while serving as destinations for labor-intensive industries and processing trade.This flying geese paradigm evolves in a slow and nonlinear manner,and may be subject to stagnation and even reversal.

Export Value-Added of China’s Manufacturing Sector:Estimation and Mechanism Analysis

Estimation of domestic and overseas value-added of manufacturing sector is an important and difficult subject for the science-based evaluation of a country＇s trade interests under global value chain. Traditional HIY approach overestimates the domestic value- added of export. Although Koopman＇s method made certain improvements, it cannot utilize traditional I/O matrix and direct input coefficient matrix under the condition of incomplete information. By creating GAMS model, this paper addresses the above-mentioned problems and employs an improved model for the estimation of variations in domestic and overseas value-added of Chinese exports between 2002 and 2012. Our results indicate that by neglecting the export of processing trade, HIY approach overestimates the domestic value- added ratio of Chinese exports. As more imported intermediate inputs have been used in the export of processing trade, the estimation result of this paper have corrected deviations in the forecast of overseas value-added ratio and its tendencies based on HIY method Further analysis of specific factors of domestic value-added of export led to the discovery that the domestic value-added of export of processing trade and mixed trade is highly vulnerable to the impact of international capital inflow. It can be seen that the improved method for the estimation of value-added has indeed corrected the deviations in the estimation of China＇s value-added. In conclusion, China should accelerate the development of export of non- processing trade and trade in high-end services, and balance the relationship of export between local firms and foreign-funded firms, with a view to improving trade dependence and increasing the trade status of Chinese manufaeturing firms in global value chain.

Foreign Value-added in China's Manufactured Exports:Implications for China's Trade Imbalance

Economists have recently become interested in weighting how much domestic value-added is actually included in China＇ s exports. Formally, the proportion of foreign and domestic contents could be identified by calculating the vertical specialization share using noncompetitive input-output tables. Applying such a method to the Chinese case, however, would result in a big measurement bias because China has a large share of processing exports, which utilize a disproportionately high percentage of imported intermediates. This paper, by directly employing 2008 trade data for which imported intermediates in both processing and non-processing trade could be identified by means of various trade patterns, provides a simplified way to estimate the share of foreign/domestic value-added included in industry-level manufactured exports. This paper finds that the vertical specialization share of China＇ s processing exports was about 56 percent in 2008, compared to about 10 percent for ordinary exports. It also finds that the sectors that experienced fast expansion of processing exports have a much higher share of foreign contents. Since processing exports accoant for about half of Chinese exports, the prevailing trade statistics, which focus on gross values rather than the value-added of exports and imports, has obviously overstated the bilateral trade imbalances, especially between China and the USA.

Re-estimation of China's Degree of Trade Dependence and External Imbalance: Value-added Statistics in the Global Production Chain

The distortion of GDP and foreign trade data has exaggerated China＇s foreign trade dependence degree and external imbalance degree. The distortion of GDP is mainly caused by the difference between the exchange rate method and purchasing power parity （PPP） estimation. The distortion of trade data includes double counting of customs statistics as well as the discrepancy between the international trade flows of goods and of capital caused by the ownership issue. The re-estimation of China＇s trade dependence degree and external imbalance degree reveals that according to official statistics, in 2007 the dependence degree of China＇s foreign trade decreased to 31.59 percent from 68.02 percent and its imbalance degree decreased to 2.11 percent from 10.13 percent. Therefore, it is utterly groundless to accuse China of ＂manipulating the exchange rate.＂

The Influence of ＂Made in China＂ on the Great Moderation of the Global Economy. An Empirical Test Based on Value Chains

We have collected data on China＇s 22 main trading partners for 1984-2012 and used System GMM to study the influence of ＂Made in China＂ on the ＂Great Moderation＂ of the global economy. Our research shows that although trade scale, real effective exchange rate, oil prices, fixed capital investment and other variables have significantly expanded global economic volatility, ＂Made in China＂ has markedly restrained output growth rate fluctuations in countries around the world and price fluctuations in developed countries, helping the global economy develop with ＂high growth, low volatility.＂ ＂Made in China＂ is a long-term variable in the context of the global value chain. China needs to take advantage of global value chain restructuring to further upgrade and develop processing and manufacturing industry and expand its presence in the international market. It could choose to adopt a ＂mirror strategy＂ and launch trade sanctions targeting counterpart industries or enterprises to counter irrational trade sanctions from the developed countries. At the same time, however, it is important for China to make its own contribution to improve global economic governance and building a new international economic order in the era of global value chains by strengthening its policy coordination with other countries.