Re-measuring Status of China＇s High-Tech Industries in International Division of Labor： Applying a Non-Competitive Input-Output Model

Based on a refined ＂non-competitive input-output model,＂ this paper proposes a new framework for analyzing the status of a country＇s high-tech industries in the international division of labor, i.e. calculates the index of＂ weighted value-added productivity ＂ by compiling non-competitive input-output tables which distinguish high-tech industries from traditional industries. The new method effectively avoids ＂statistical illusion＂ which stems from a biased focus on gross exports under intra-product specialization. The empirical study shows that since 1995, the status of China＇s high-tech industries has grown quickly as a result of enhanced labor productivity, but still lags behind those of major developed countries. In addition, the study also suggests that the status of China＇s high-tech industries has been over-estimated using the traditional gross export statistical method.

An extended input-output table for environmental and resources accounting

Environmentally Extended Input-Output(EEIO)tables have become a powerful element in supporting information-based environmental and economic policies.National-and provincial-level 10 tables are currently published by the National Bureau of Statistics of the People's Republic of China according to well-defined conventions.However,county-level 10tables are not provided as a rule by official statistics organizations.This paper conducts an overview of compiling EEIO tables for environmental and resources accounting at the county level and then answers several questions:First,what kind of data should be prepared for the compilation of county-level EEIO tables?Second,how can we set up comprehensive EEIO tables at the county level?Third,regarding the survey methods and the indirect modeling,which one should be chosen to build EEIO tables at the county level?Finally,what policy questions could such a table answer?EEIO tables at the county level can be used to predict the economic impacts of environmental policies and to perform trend and scenario analysis.

Exploring the Dynamics of Industrial Convergence Among RCEP Member Countries: An Empirical Study

The evolving dynamics of industrial convergence among the member countries of the Regional Comprehensive Economic Partnership(RCEP)framework have emerged as a significant subject that merits in-depth consideration and analysis.This study initially employs multi-regional input-output(MRIO)data and the social network analysis(SNA)method to delineate the levels and variation trends of this industrial convergence across the RCEP member countries.It then delves into the positive effects of this convergence phenomenon on the trade and investment fields of the member countries.The research findings indicate:(a)In 2006 and 2015,before the implementation of the RCEP,the RCEP member countries displayed a relatively close industrial convergence.The convergence levels exhibited a general upward trend on both the supply and the demand sides,but there were significant disparities in the levels of industrial convergence among the member countries.Furthermore,while the convergence in the three economic sectors showed an increasing trend,the development was uneven across the board.(b)Since the implementation of the RCEP,the trade ties among the member countries within the region have strengthened significantly,and the interplay between the countries’industrial and supply chains has been characterized by high-quality collaboration and demonstrated remarkable resilience.In addition,the convergence in the investment fields of the RCEP member countries and their respective industries has unleashed a wave of positive synergies.These findings offer valuable insights that can serve as a robust foundation for formulating effective policies to advance the growth and prosperity of the RCEP region.

Estimation of regional physical imports and exports of EW-MFA in China using monetary input-output tables

Given the statistical gaps in material flow among provinces in China, a method was introduced to estimate regional physical imports and exports （RPIE）, which includes international and interregional imports/ exports. This method uses provincial monetary input- output tables （MIOT） and international trade statistics. A coefficient matrix representing correlations between monetary value and physical mass for years 2000-2009 was obtained based on a detailed commodity classification and 22 material production sectors in MIOT. With the coefficient matrix as reference, RPIE was measured. Pilot calculation of both regional physical trade balance and domestic material consumption, as well as a brief analysis of these methods, were conducted using 2002 data.

Measuring I/O-Production in Digital Economy

According to OECD standards(United Nations,2008),“productivity is commonly defined as a ratio of a volume measure of output to a volume measure of input use”.This ratio indicates how efficiently production inputs,such as labour and capital,are being used in an economy to produce a given level of outputs.Productivity stays aside the main aggregates of national accounts,as the national income(a proxy of GDP),the total output and the circulating capital.Assume the existence of a Leontief-type national Input-Output Table with the vector of total output and the vector of intermediate inputs,situated on its right and lower border.In this paper a measure of capital productivity is proposed.It is called the productiveness,and results from the solution of a boundary value problem,elaborated for Input-Output Tables,involving the vector of total output and the vector of intermediate inputs.

Using Fundamental Economic Structures to Estimate Chinese Regional Input-Output Tables

The estimation of regional input-output tables is well discussed in the literature and a large variety of methods exist. In this paper we will use the concept of fundamental economic structure （FES） to estimate the matrix of intermediate deliveries for some ＂missing＂ region（s）. Furthermore, the estimates will be compared with the estimates obtained from ＂traditional＂ estimating techniques, including regionalization on the basis of the national table, and borrowing coefficients from similar regions. The results show FES is very helpful for compiling regional tables of China.

Evolution trends and structural decomposition of China's green value-added over 40 years of reform and opening-up

China's 40-year history of reform and opening-up includes rapid economic development as well as pollution and environmental governance.Using a four-stage division,this study explores the evolution trend and structural decomposition of China's green value-added by constructing a non-competitive input-output table for environmental pollution from 1978 to 2017.The results indicate that pollution production coefficients increased continuously,and the green value-added index decreased.Additionally,the structural decomposition showed that investment and export were critical for economic growth during the period,though they were accompanied by serious pollution problems.The pollution generated by the raw material(represented by coal mining)and processing industries(represented by the textiles)were not controlled effectively.Pollution treatment for these industries should be strengthened in the future.The study has implications for government officials,policy makers,and academics.First,China should make green development a core concept for economic development,increase environmental pollution governance,develop a“green GDP,”incorporate the external costs of environmental pollution into the national economic accounting system.Second,it must change the investment and export structure as well as the traditional economic development pattern that exacerbates pollution.Specifically,the country should develop industries with low pollution and promote the export of industries producing high value-added products and increase green GDP per capita.Third,it should closely monitor the development of highly polluting industries.Upgrading technology to reduce pollution and strengthening pollution treatment will reduce the number of polluting industries and improve environmental governance efficiency.

Integrated Water and CGE Model of the Impacts of Water Policy on the Beijing's Economy and Output

The article used general equilibrium model to analyze the change of gross domestic product and industry output affected by water resources policies in Beijing City by using GEMPACK soft tool.The article researches on rules of water supply and demand,evaluating water resources,building water resources input and output table,establishing water computable general equilibrium model and stimulating water policy.The stimulation gives a scenario that increases water price by 10%.The result shows the following aspects.First,water resources policy infects gross domestic product and industry output in different ways.There are different behaviors in different industries as to the water policy. Agriculture industry has the same tendency as water price change and it has more sensitive to water quantity than to water price.For basic energy industries such as oil and chemistry and gas,they show diversity tendency.As to some high water consumer industry such as paper and textile etc.,water resource economic policy can infect them greatly and can promote them to accomplish more water-saving technology.Waste water and construction and service industries show the same tendency as to water policy.Second,government should pay more attention to water resource policy by macro economic administration.The simulation also shows that the output and supply and consumer price change more than expect as to water policy in a free market economic in water industry.So as to a government policy maker,one should be more carefully and prepare suitable forecast and plan to water policy and its negative impact.

A process-level hierarchical structural decomposition analysis (SDA) of energy consumption in an integrated steel plant

A hierarchical structural decomposition analysis(SDA) model has been developed based on process-level input-output(I-O) tables to analyze the drivers of energy consumption changes in an integrated steel plant during 2011-2013. By combining the principle of hierarchical decomposition into D&L method, a hierarchical decomposition model for multilevel SDA is obtained. The developed hierarchical IO-SDA model would provide consistent results and need less computation effort compared with the traditional SDA model. The decomposition results of the steel plant suggest that the technology improvement and reduced steel final demand are two major reasons for declined total energy consumption. The technical improvements of blast furnaces, basic oxygen furnaces, the power plant and the by-products utilization level have contributed mostly in reducing energy consumption. A major retrofit of ancillary process units and solving fuel substitution problem in the sinter plant and blast furnace are important for further energy saving. Besides the empirical results, this work also discussed that why and how hierarchical SDA can be applied in a process-level decomposition analysis of aggregated indicators.

Parameterless Pruning Algorithms for Similarity-Weight Network and Its Application in Extracting the Backbone of Global Value Chain

Purpose:With the availability and utilization of Inter-Country Input-Output(ICIO)tables,it is possible to construct quantitative indices to assess its impact on the Global Value Chain(GVC).For the sake of visualization,ICIO networks with tremendous low-weight edges are too dense to show the substantial structure.These redundant edges,inevitably make the network data full of noise and eventually exert negative effects on Social Network Analysis(SNA).In this case,we need a method to filter such edges and obtain a sparser network with only the meaningful connections.Design/methodology/approach:In this paper,we propose two parameterless pruning algorithms from the global and local perspectives respectively,then the performance of them is examined using the ICIO table from different databases.Findings:The Searching Paths(SP)method extracts the strongest association paths from the global perspective,while Filtering Edges(FE)method captures the key links according to the local weight ratio.The results show that the FE method can basically include the SP method and become the best solution for the ICIO networks.Research limitations:There are still two limitations in this research.One is that the computational complexity may increase rapidly while processing the large-scale networks,so the proposed method should be further improved.The other is that much more empirical networks should be introduced to testify the scientificity and practicability of our methodology.Practical implications:The network pruning methods we proposed will promote the analysis of the ICIO network,in terms of community detection,link prediction,and spatial econometrics,etc.Also,they can be applied to many other complex networks with similar characteristics.Originality/value:This paper improves the existing research from two aspects,namely,considering the heterogeneity of weights and avoiding the interference of parameters.Therefore,it provides a new idea for the research of network backbone extraction.

China's comparative advantage still in low-tech manufacturing sector

This paper represents an attempt to estimate the level of vertical specialization in China's manufacturing industry using China's input-output tables (1995-2005) compiled by the OECD; describe the trends of evolution in the trade competitiveness of China's manufacturing industry using the 1995-2006 trade data of 24 Chinese industries; and examine the key factors affecting the trade competitiveness of China's manufacturing industry in accordance with the analytical framework of Hummels et al (2001). The estimation results indicate that i) the rapid increase in the vertical specialization levels of China's merchandise sectors (especially the high-tech manufacturing sector) has to some extent explained the explosive growth of China's exports (especially high-tech exports) in recent years; ii) there have been no substantive changes in China's comparative advantages. Such advantages are still attributed to the low-tech manufacturing sector. However, the comparative advantage and trade competitiveness of the high-tech manufacturing sector have been on the rise; iii) vertical specialization has signif icantly enhanced the trade competitiveness of China's manufacturing industry. Foreign market dependence, domestic intermediate input intensity and R&D intensity have an obvious promoting effect on the trade competitiveness of China's manufacturing industry.

The Driving Forces of CO2 Emission in China： 2002-2007

This paper provides a computation on both the China＇s aggregate CO2 emission volume and the emission of each sector over the period of 2002-2007, based on the input-output analysis. Further analysis is also given on the various determinants of the change in the emission volume, with the aid of structural decomposition analysis （SDA） based on a residual-free method. Based on the input-output table of China in 2002 and 2007, the merge of sectors and the adjustment of price change have been made during the study. The emissions of carbon dioxide in China increased from 2,887.3 million ton to 5,664.6 million ton during 2002-2007. The average rate of increase is 13.3%, faster than the average rate of gross domestic product （GDP） growth 11.6% slightly. According to the process of SDA, the changes in emission are analyzed in terms of four different factors. Among the four factors studied in the paper, it is found that the change of emission intensity and structure of demand are the main reason of the decrease of emission, while production technology and scale effect increase the emission volume. The paper also finds that although the direct emission intensity decreased during the study period, the total emission intensity increased with the annual rate of 3.8%, which reflects the result of energy policy is not equal in different sectors.

India＇s Engagement With Indonesia： Potentiality Lies in Air Services

Global financial crisis and subsequent protectionist measures of US government motivated Indian government to look for opportunities towards ASEAN nations through ＂Look East Policy.＂ While scouting for opportunities, it was found that Indonesian air services market is buoyant and promising where Indonesia has recently liberalized its open sky policies for inviting domestic as well as foreign investment. Time is appropriate for Indian government to negotiate on how India can participate in Indonesian domestic market and provide air services to its consumers. The paper tries to analyze how Indian private domestic airlines can enter into the markets of Indonesia and whether they would be able to provide such services. It further tries to examine that certain value addition services in terms of auxiliary air services are currently required for Indonesia. To that extent, how is India going to capitalize such opportunities by providing such competitive value addition services？ Indonesia is currently witnessing frequent air accidents and making safety as a major concern for consumers. It tries to argue whether India can provide technical and other support services to reduce such hazards. The research methodology includes Input-Output Table calculating using WIOD （World Input Output Database） database. National Input-Output Table for analyzing Indonesian air services was also consulted for authors＇ own calculations

Variable Impact of Renminbi Appreciation on Chinese Industries＇ Profitability

This paper uses the input-output tables from 2007 to estimate the exchangerate risk exposure of all 42 sectors of the Chinese economy. It then demonstrates a new quantitative approach for examining the differential impacts of Renminbi appreciation on the export of finished goods and the import of intermediate inputs in each sector, and estimates the changes in profitability of each sector under different degrees of Renminbi appreciation. The results indicate that appreciation of the Renminbi will increase the profitability of 22 sectors, which are generally monopolistic, capital-intensive, and reliant on R＆D, and reduce the profitability of 20 sectors, which are generally competitive, labor-intensive, and less reliant on R＆D. This suggests that the degree and pace of Renminbi appreciation must be coordinated with industrial and employment policies in order to reduce exchange-rate risk exposure through trade restructuring, to improve economic structure, to promote competition and employment, and to maintain steady and sustainable economic growth.

Principal Features of Building Social Accounts Matrix and Improving Statistical Database for Eco-countries

With common borders of the population, total area, and GDP （PPP-based） of Economic Cooperation Organization （ECO） member states are estimated as 416 million persons, 7.9 million m2, and US$2.7 trillion respectively （2010 data）. Although heterogeneous in the extent, there is economic development, overall, with serious energy and transport-transit relations among countries that is reflected in growing trade turnover year-by-year. However, there are still rather unused resources and capacity in such areas of cooperation among countries as exchange of energy, transport services, agricultural and industrial goods, use of opportunities for tourism, promoting investment and innovation processes and other areas. Certainly, maximum and optimal use of these resources calls for availability of analytical means capable of accounting for relations both within member states and among them. The implementation of computable general equilibrium （CGE） modeling in each member state would thus be of great significance in resolution of these problems both in terms of accounting for input-output linkages within the countries as well as enabling impact of main trading partners and goods and services among countries. The analysis carried out indicates that there are a number of problems in application of CGE model in most of the member states. As such, input-output tables are not compiled in some countries, while in others despite the fact that these tables are compiled, there are no attempts to build the model, yet in other countries, even if the CGE model is implemented, there are difficulties in taking into account the real results in the face of serious problems related to improving national accounts system database. Summarizing these problems, it is possible to conclude that to ensure the application of a CGE model,there is a great need to work out procedures of compilation of a social accounts matrix （SAM） that lies on the basis of this model, for which the relevant statistics of a member state must be improved. Considering the above-mentioned, the presented research, makes procedures and proposals on compilation of SAM, improves statistical data for researching the extent of application of CGE Model in ECO member states, and identifies the degree of availability and organization of relevant data to develop input-output tables and respective SAM.

Trends and Features of China's Inter-Provincial Trade:1987-2007

With today's economic globalization,inter-provincial trade plays an important role in a country's economy.This paper is the first to adopt the input-output tables of 30 Chinese provinces and to summarize the evolution of China's inter-provincial trade from1987 to 2007.This paper reaches the following conclusions.First,China's inter-provincial trade has sustained a period of rapid growth.In 2007,the total volume of inter-provincial trade was twice the amount of international trade,with the eastern region accounting for the majority of the inter-provincial trade volume.GDP may have a greater effect on interprovincial trade than geographic distance does.Second,inter-provincial trade maintains a high level of concentration and overlaps with the high concentration of GDP.Third,the inter-provincial trade dependence of Chinese provinces tends to increase,an indication of the growing domestic market integration.Moreover,the eastern region's dependence on inter-provincial trade is higher than the central and western regions'.Fourth,the share of inter-provincial trade in the overall external trade of Chinese provinces has a declining tendency,which indicates a slower process of China's domestic market integration compared with international market integration.However,in terms of proportion,the external trade of most Chinese provinces is still dominated by inter-provincial trade.Fifth,most provinces with longstanding inter-provincial trade deficits are in the central and western regions.

Value-Added Trade and Evolution of China's Comparative Advantages

Based on heterogeneity in firm's sales destinations and trade patterns, this paper estimates China's ratio of value-added exports(RVAE) using value-added trade accounting, and discusses the evolution of China's comparative advantages from the perspective of value-added trade. Our research findings suggest that without taking into account heterogeneity in firm's sales destinations and trade patterns,China's RVAE will be overestimated. Conventional gross trade accounting underestimates the export competitiveness of China's labor-intensive and capital intensive sectors, but overestimates the export competitiveness of China's technology-intensive sectors,which leads to a significant reversal of comparative advantages. Conventional gross trade accounting method overestimates the trade surplus of China's manufacturing and technology-intensive sectors with the US by about 60% and 85% respectively.

Analysis of the Pull Effect of Local Government Special-Purpose Bond Investment on Economic Growth Under the Input-Output Framework

In this paper,we discuss the development process of local government special bonds,and the role channels of local government special debt investment in driving China’s economic growth.Based on the specific decomposition of Xinjiang local government special bond investment,this paper uses the non-competitive input-output model for the first time to analyze the net pulling effect of Xinjiang local government special bond investment on Xinjiang’s GDP and employment in 2020.Two measure calibers are set in this paper based on whether the financing costs are considered or not;in addition,we set up four scenarios based on two conditions:Whether to consider retained fun and whether to consider using special-purpose bond investment to leverage social capital.The results show that:1)when financing costs are not considered,the RMB77.4 billion local government special-purpose bonds can push the GDP of Xinjiang to grow by RMB42.27 billion,RMB35.12 billion,RMB77.548billion and RMB69.34 billion respectively under the four scenarios;2)when financing costs are not considered,the number of jobs driven by the RMB77.4 billion local government special-purpose bonds was respectively 372,300,324,500,718,500 and 601,300 in the four scenarios;3)when financing costs are considered,the RMB77.4 billion local government special-purpose bonds can push the GDP of Xinjiang to grow by RMB71.876 billion and RMB64.268 billion under scenario 3)and scenario 4).

Cumulative Tariff Cost Rate and Structure in the Global Value Chain:A Theoretical and Empirical Study

This paper constructs a more unified measurement framework from the perspective of the Leontief inverse matrix and Ghosh inverse matrix(Ghosh).At the same time,referring to the four-term decomposition method of Leontief inverse matrix in Muradov(2016),this paper analyzes the structural decomposition of the cumulative tariff cost rate.Results show that(1)Overall,from 2000 to 2017,China's cumulative tariff cost rate,direct tariff cost rate,and multi-stage tariff cost rate all showed a downward trend,and the decline was greater than that of other countries(regions).China has strictly fulflled its WTO accession commitments and has greatly reduced the tariff rate on imported intermediate goods.(2)With China's deep participation in the global value chain,the amplification effect of China's tariffs has increased from 2.57 in 2000 to 3.17 in 2017,and there is a certain degree of"amplification effect"(above 1.5)in tariffs in all countries in the world.(3)From the perspective of the contribution rate of various countries in the world,China contributes the most to the global cumulative tariff cost rate,which is due to the complexity of the global production network structure,rather than the excessively high tariff rate imposed by China on imported intermediate goods.In terms of policy implications,if China did not take the initiative to reduce tariffs,the structural changes in the global production network would lead to a larger global cumulative tariff cost rate.

Spatiotemporal evolution and driving factors of global production networks:An analysis based on the input-output technique

Global production networks have become the most important organizational platforms for coordinating international production activities,and their evolution patterns profoundly affect value distribution across the world.In this study,we shall firstly carry out an in-depth quantitative research to analyze the patterns and evolution of global production networks,using a long time-sequenced multi-region input-output table and the network analysis approach.Then based on the method of value-added decomposition,we will develop an index system to measure the degree of participation of regions in global production networks.Finally,we will try to identify the factors affecting the degree of participation of countries in global production networks by constructing a regression model.The results show that from 1995 to 2015,the evolution of global production networks measured by input-output linkages experienced four stages:expansion,contraction,re-expansion,and re-contraction.In addition,the core communities of global production networks evolved from two major production communities(Europe and the Americas)to three pillars(Europe,Americas,and Asia)while more segmented communities are mainly affected by geographical proximity.The latter consists of European,North American,South American,African and Asian communities.The evolution of the global production network pattern primarily manifests as a process of cooperation strengthening or weakening among communities,based on changes in the external environment and the need for individual development strategies.Meanwhile,the United States,Germany,and the United Kingdom have consistently ranked among the top entities in global production networks,whereas China,Russia,and Southeast Asia have the fastest rises in ranking.In addition,government efficiency,resources endowment,infrastructure conditions and technology levels play important roles in the participation in global production networks.