Vertical Specialization and Trade Surplus in China
Chandos Asian Studies Series

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Language: English
Cover of the book Vertical Specialization and Trade Surplus in China

Subjects for Vertical Specialization and Trade Surplus in China

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204 p. · 15.5x23.2 cm · Hardback
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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.

List of figures and tables

List of abbreviations

Acknowledgements

About the author

Chapter 1: Introduction: Trade surplus in China – vertical specialization and related issues

Abstract:

The starting point: China’s vertical specialization trade

Trade surpluses are as much a source of conflict as strength

Analyzing the impact of vertical specialization on China’s trade surplus

Chapter 2: Vertical specialization trade patterns and China’s trade surplus

Abstract:

China’s trade: more and more centered on trade surplus

Vertical divisions of labor driving China trade

China’s trade is still dependent on western markets for final goods exports

Three optimized trade development zones: regional foreign trade disparity in China

Chapter 3: An analysis of the role of vertical specialization in the development of China’s trade surplus: evidence from 2000–2007

Abstract:

Introduction

Import and export of commodities: structure and trade pattern transition in China

What role for vertical specialization trade in China’s trade surplus?

Conclusion

Chapter 4: Vertical specialization, FDI and China’s import–export imbalance

Abstract:

Introduction

China’s acceleration into vertical specialization due to FDI

Empirical evidence of the relationship between FDI and international trade in China based on VS

Conclusion

Chapter 5: FDI and the processing trade in China: based on vertical specialization

Abstract:

Introduction

Processing trade: the form of China’s strong involvement in vertical specialization

Empirical evidence: the relationship between FDI and the processing trade

Conclusion

Notes

Chapter 6: An empirical analysis of the relation between imports and exports of China’s foreign-invested enterprises based on vertical specialization

Abstract:

Introduction

Empirical evidence: the relationship between imports and exports of foreign invested enterprises (FIEs) in China

Conclusion

Chapter 7: An empirical study of the relationship between the US FDI inflows and China–US bilateral trade imbalances: based on vertical specialization

Abstract:

Introduction

Unique features of China-US trade due to vertical specialization considerations

Empirical test

Conclusion

Chapter 8: A cointegration analysis of the linkage between US exports to China and US imports from China based on vertical specialization

Abstract:

Introduction

Empirical evidence: the relationship between US Exports to China and US Imports from China

The Error-Correction model for the long-run relationship between {LNEX_SA} and {LNIM_SA}

Conclusion

Chapter 9: FDI, processing trade and China–Japan bilateral trade imbalance

Abstract:

Introduction

Evolution of the China–Japan trade pattern

Japanese direct investments in China, Chinese processing trade and China–Japan bilateral trade: empirical evidence

Conclusion

Chapter 10: An empirical analysis on transformation of China’s foreign trade development mode: based on vertical specialization

Abstract:

Introduction

Conceptual framework of vertical specialization and mode transformation of foreign trade development in China

The impact of vertical specialization on mode transformation of foreign Trade development in China: empirical evidence

Conclusion

Chapter 11: Closing remarks: rebalancing the Chinese trade

Abstract:

Appendix

References

Index

Wei Wang is a Professor at the School of Chemical Engineering at Sichuan University, PR China. He received his B.S. and Ph.D. degrees from Sichuan University in 2007 and 2012. His research interests include microfluidics, interfaces, and functional materials. He has published 150+ papers in peer-reviewed journals and written 10+ invited book chapters. He has received many honours and awards, including the Emerging Investigator 2014 of Lab on a Chip (The Royal Society of Chemistry), the Hou Debang Chemical Science and Technology Award - Youth Award issued by the Chemical Industry and Engineering Society of China (2017), Second Prize of the State Technological Invention Award (2018), and First Prize of the Sichuan Provincial Science and Technology Progress Award (2015, 2020).
  • 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