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Value Added Trade and Structure of High-technology Exports in China

Discussion Papers

No.449

March 2014

ABSTRACT

This study focuses on the technological intensity of China’s exports. It first introduces the method of decomposing gross exports by using the Asian international input–output tables. The empirical results indicate that the technological intensity of Chinese exports has been significantly overestimated due to its high dependency on import content, especially in high-technology exports, an area highly dominated by the electronic and electrical equipment sector. Furthermore, a significant portion of value added embodied in China’s high-technology exports comes from services and high-technology manufacturers in neighboring economies, such as Japan, South Korea, and Taiwan.

Keywords: Technology, Production networks, Value added trade
JEL classification: C67, F15, O39

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