Speaker: Hiau Looi Kee (World Bank)

Time: 10:00-11:30 a.m., Jun 18, 2024, GMT+8

Venue: 1F, Wanzhong Building, Langrun Garden, Peking University & Zoom: Meeting ID: 994 5991 6531 (Passcode: inse)

Abstract: 

Since its WTO accession, China has been moving up the global value chains, exemplified by the rising domestic value added ratio (DVAR) in exports. Concurrently, China has also been upgrading its domestic infrastructure, showcased by the construction of high-speed railways (HSR). This paper derives a theoretical model relating HSR to DVAR in exports. The firm-level DVAR is further estimated with a new methodology solely based on customs transaction data. Results show that the rising DVAR is mainly driven by the processing exporters substituting imported materials with domestic materials when the processing exporters are connected to more domestic suppliers through HSR.

Source: Institute of New Structural Economics, PKU