Abstract
The Sino-US trade conflict, the collapse of economic globalization and the reconstruction of global value chains have enhanced the necessity and urgency of building an open and connected, self-controllable, domestic value chain. Jiangsu is a major province and a large open province. The goal, path and measures for Jiangsu to build an independent and controllable advanced manufacturing system will have typical reference value. Based on the KWW trade value added decomposition framework, the World Input-Output Table (WIOT) and the inter-regional input-output tables of 30 provinces in China, Jiangsu’s return domestic value added, foreign value added, province value added and other provinces’ value added in Jiangsu’s manufacturing exports are estimated. Meanwhile, the regional linkages and changes of Jiangsu’s manufacturing exports with the rest of the provinces are also analyzed. The results show that the value added of imports from Jiangsu exports is higher than that of other provinces, which indicates that the “foreign circulation” of Jiangsu’s economy is stronger than “domestic circulation” though the situation is always changing in recent years. The Yangtze River Delta region is the core space for Jiangsu to build manufacturing industry chain. The Yangtze River Economic Belt and the Huaihai Economic Zone, which is the part of new Silk Road, are two important extended spaces for Jiangsu to build up NVC. Finally, On the basis of the decomposition of export value added, the industries with real comparative advantages in 16 major manufacturing industries in Jiangsu Province are evaluated. Both the advantages and disadvantages of Jiangsu’s value chain upgrading at the industrial level are unveiled.
Highlights
Since the mid-to-late 1980s, due to the difference in the cost of labor or other factors, the degree of improved divisibility of the production process owning to technological advancement, and the rapid decline in trade costs and the division of the global value chain gradually occupy a dominant position in the world market and become the main carrier and manifestation of this round of economic globalization
The corresponding data for Guangdong in 2007 is 40.68% and Shanghai is 42.76%. It shows that the position of Jiangsu manufacturing industry in the global value chain may be relatively higher, the value chain in the province is longer, and there may be relatively stronger technical control and value chain integration
The division of labor between Jiangsu’s manufacturing industry and global value chain has risen to the level of intra-product division of labor
Summary
Since the mid-to-late 1980s, due to the difference in the cost of labor or other factors, the degree of improved divisibility of the production process owning to technological advancement, and the rapid decline in trade costs and the division of the global value chain gradually occupy a dominant position in the world market and become the main carrier and manifestation of this round of economic globalization. The innovation value and marginal contribution of this paper are mainly reflected in the following three aspects: First, the application of value added decomposition and input-output technology directly to Jiangsu “building an independent and controllable manufacturing system” is a new perspective of national value chain research, and a problem-oriented and application-oriented research. Whether it is a global value chain or a national value chain, external view is a grand narrative, but it must be implemented in specific countries, regions and especially enterprise entities. Value Added Decomposition Framework, Value Added Comparative Advantage (RCA) and Data Source
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