Regional and global production networks: the case of China

Abstract

Purpose – The purpose of this paper is to examine various aspects of regional and global production networks, with a special focus on China. Design/methodology/approach – The author studies four different approaches to measure production networks and discuss their strengths and weaknesses. The author presents some of the results associated with some of these measurements. Findings – The author finds that using trade data alone is simple but incomplete. Bringing in input–output tables is useful but much more data would be needed. In addition, for the case of China, electronic goods and telecommunication goods tend to have a higher foreign value added. Research limitations/implications – Data with good quality can be a problem. The authors also have difficulty getting input–output tables for many years. Practical implications – The results can guide policymakers as to which industries can create more domestic value added. The results can also lead to betting of an understanding of trade balances measured in the value added. Social implications – The results can generate further understanding among citizens of many different countries, including China, about the importance of different sectors in generating the value added. Originality/value – The value of this paper is to focus on alternative ways to measure the value added in exports from China. The paper is the first to discuss the strengths and weaknesses of different approaches and present some of these results.