Spatial and sectoral characteristics of China's international and interregional virtual water flows - based on multi-regional input-output model

This paper provides a systematic analysis of spatial and sectoral characteristics and changes in virtual water flows associated with China's interregional and international trade based on the China interregional input-output tables of 2002 and 2007. The results show significant improvement in water use efficiency between 2002 and 2007. However, the general spatial patterns and sectoral components of virtual water flows have more or less remained during the period. Almost all Chinese provinces are net exporters of virtual water in international trade. In interregional trade, the dominant direction of virtual water flow is from peripheral provinces to eastern coastal provinces. The agricultural sector plays an important role in shaping this direction and has significant impacts on water uses in exporting provinces, some of which are water scarce. The results of this study clarify some confusions concerning mismatches between regional water endowments and virtual water trade within China and with other countries.