The Analysis of Value-added Exports of China's High-Tech Manufactures

Based on the construction of a global bilateral input-output table, we introduce a theoretical framework to measure value added in intermediate imports. What's more, compare trade in value-added terms and gross terms. Firstly, We find that value added in exports are less than gross value, which the method about the measurement of the domestic content in exports put forward by Hummels et al (2001) overestimate value per unit of export. Secondly, bilateral trade balance in value-added terms does not equal to bilateral gross trade balance. Both the absolute and relative proportion of value added in exports and gross exports between trading partners have impact on adjustment magnitude when trade in gross terms convert to value-added terms. Finally, we explore value added in exports of manufacture and high-tech manufacture in China, and find that bilateral trade balance in both sample countries and China have a great transfer, which show there are triangle production-sharing phenomenon in the sample trade of countries' manufactures and high-tech manufactures.