Is the Ratio of Service Low in China's Exports：An Analysis Based on Global Value Chains
- XIA Jiechang & NI Hongfu
XIA Jiechang (National Academy of Economic Strategy, CASS)
NI Hongfu (Institute of Economics, CASS)
From the perspective of global value chains, this paper uses the latest calculation and decomposition method of value added trade in trade, calculates the forward and backward value added in export of China‘s service industry, and analyzes the role of China’s service industry in export trade.The study finds that the increase of the value of the services is embodied in other sectors through indirect exports. The ratio of the value of service and the corresponding industry exports is more than 1, much higher than the second industry. Second, valueadded exports from service sector accounted for more than 31.32% of total China's value-added exports, and the proportion of service value added to China's total value-added exports is 17.4 percentage points higher than that calculated by the traditional method of trade statistics. Third, the proportion of service value added to China's total value-added exports is relatively low compared with others country, and even lower than that in Indian. At last, The low proportion of built-in high-end service activities (R&D and management) in China's manufacturing sector has contributed little to the value of inbuilt services of export in the manufacturing sector.
- Global Value Chains, Service Trade, Trade in Value Added, Domestic Value Added in Exports