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Vertical Specialization and Trade Surplus in China

Book Description

The traditional flow of goods from primary production through to manufacturing and consumption has expanded across international borders conterminously with globalization. Vertical specialization (VS) in processing and manufacturing in China has driven export growth. In particular, intra-industry and intra-product trade between China, the US and East Asia has increased China’s trade surplus over the long term. Vertical Specialization and Trade Surplus in China aims to measure the level of VS in the Chinese manufacturing industry to provide a more accurate representation of China’s trade surplus, and gives empirical analysis on provinces and products with important VS activities in order to assess China’s trade value-added. Exploring the vertical division of labour, and foreign direct investment (FDI) driving China’s import and export imbalance, the book is divided into eight chapters, each covering an aspect of VS in China. The first chapter outlines the aims and method of the study. Chapter two covers VS trade pattern and trade surplus. Chapter three looks at FDI and the import and export imbalance, and chapter four covers the relationship between VS and import and export of foreign invested enterprises. The fifth chapter considers the causes and prospects for growth in China-US and China-Japan trade. Chapters six and seven give an empirical analysis of VS and trade surplus, and a breakdown of VS per industry in China’s provinces. Finally, chapter eight considers rebalancing imports and exports in China.

  • Measures VS across China including the developed provinces based on the newest input-output table
  • Presents the main provinces and products closely related to VS
  • Gives evidence on global VS trade patterns from China’s national data

Table of Contents

  1. Cover image
  2. Title page
  3. Table of Contents
  4. Copyright
  5. List of figures and tables
  6. List of abbreviations
  7. Acknowledgements
  8. About the author
  9. Chapter 1: Introduction: Trade surplus in China – vertical specialization and related issues
    1. Abstract:
    2. The starting point: China’s vertical specialization trade
    3. Trade surpluses are as much a source of conflict as strength
    4. Analyzing the impact of vertical specialization on China’s trade surplus
  10. Chapter 2: Vertical specialization trade patterns and China’s trade surplus
    1. Abstract:
    2. China’s trade: more and more centered on trade surplus
    3. Vertical divisions of labor driving China trade
    4. China’s trade is still dependent on western markets for final goods exports
    5. Three optimized trade development zones: regional foreign trade disparity in China
  11. Chapter 3: An analysis of the role of vertical specialization in the development of China’s trade surplus: evidence from 2000–2007
    1. Abstract:
    2. Introduction
    3. Import and export of commodities: structure and trade pattern transition in China
    4. What role for vertical specialization trade in China’s trade surplus?
    5. Conclusion
  12. Chapter 4: Vertical specialization, FDI and China’s import–export imbalance
    1. Abstract:
    2. Introduction
    3. China’s acceleration into vertical specialization due to FDI
    4. Empirical evidence of the relationship between FDI and international trade in China based on VS
    5. Conclusion
  13. Chapter 5: FDI and the processing trade in China: based on vertical specialization
    1. Abstract:
    2. Introduction
    3. Processing trade: the form of China’s strong involvement in vertical specialization
    4. Empirical evidence: the relationship between FDI and the processing trade
    5. Conclusion
    6. Notes
  14. Chapter 6: An empirical analysis of the relation between imports and exports of China’s foreign-invested enterprises based on vertical specialization
    1. Abstract:
    2. Introduction
    3. Empirical evidence: the relationship between imports and exports of foreign invested enterprises (FIEs) in China
    4. Conclusion
  15. Chapter 7: An empirical study of the relationship between the US FDI inflows and China–US bilateral trade imbalances: based on vertical specialization
    1. Abstract:
    2. Introduction
    3. Unique features of China-US trade due to vertical specialization considerations
    4. Empirical test
    5. Conclusion
  16. Chapter 8: A cointegration analysis of the linkage between US exports to China and US imports from China based on vertical specialization
    1. Abstract:
    2. Introduction
    3. Empirical evidence: the relationship between US Exports to China and US Imports from China
    4. The Error-Correction model for the long-run relationship between {LNEX_SA} and {LNIM_SA}
    5. Conclusion
  17. Chapter 9: FDI, processing trade and China–Japan bilateral trade imbalance
    1. Abstract:
    2. Introduction
    3. Evolution of the China–Japan trade pattern
    4. Japanese direct investments in China, Chinese processing trade and China–Japan bilateral trade: empirical evidence
    5. Conclusion
  18. Chapter 10: An empirical analysis on transformation of China’s foreign trade development mode: based on vertical specialization
    1. Abstract:
    2. Introduction
    3. Conceptual framework of vertical specialization and mode transformation of foreign trade development in China
    4. The impact of vertical specialization on mode transformation of foreign Trade development in China: empirical evidence
    5. Conclusion
  19. Chapter 11: Closing remarks: rebalancing the Chinese trade
    1. Abstract:
  20. Appendix
  21. References
  22. Index