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Studies on the rise of global value chains (GVCs) have attracted a great deal of interest in the recent economics literature. However, due to statistical and methodological challenges, most existing researches ignore domestic regional heterogeneity in assessing the impact of joining GVCs. GVCs are supported not only directly by domestic regions tha...
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The initial stage of the G20/OECD BEPS program is complete, with 15 recommendations released in October 2015. However, OECD recommendations require national jurisdictions to implement each Action item and this is not necessarily occurring consistently. The objective of this article is to consider the implementation of both G20/OECD BEPS initiatives...
In the last decade, the concept of ‘global value chain’ (GVC) has become popular to describe the way firms fragment production into different stages that are located in different economies. However, recent evidence indicates that there are lower levels of fragmentation of production. Some authors also suggest that supply chains are regional rather...
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... Furthermore, we identify structural Economies 2023, 11, 199 3 of 24 features that provide new insights into the theoretical and policy-based issues of uneven development opportunities. We do not explicitly explore the temporal dimensions Meng and Yamano 2017), the measurement of value capture (Whitfield et al. 2020;Coe and Yeung 2015), upgrading (Gereffi 2019a), and the feedback's direct and indirect effects on multi-country input-output tables (Hewings and Oosterhaven 2015). Our estimates are based on the mapping of interdependent value-added flows across subnational borders (Haddad and Araújo 2020), which enable us to propose a structural typology of the potential to increase quality linkages. ...
This paper examines the subnational dimension of regional value-added transfers in multiscalar value chains in Brazil by analyzing the local content embedded in trade. This study reveals distinct spatial-based connectivity patterns within subnational and global value chains. An input–output model is employed to estimate the trade in value added from different Brazilian regions. The findings demonstrate that economically advanced regions, such as Southeastern Brazil, are both globally and nationally integrated and therefore stand to benefit from both types of integration. Conversely, subnational peripheries in the North and Northeastern states of Brazil play a crucial role in supplying raw materials for both domestic and global flows. These regions exhibit a clear profile of export dependency with low value-added content in trade. Consequently, our trade measures highlight a spatial concentration of development opportunities characterized by a distinct core–periphery pattern within the country. This imbalance in territorial capacity limits the potential for these regions to derive economic development benefits from integration into value chains.
... This scarcity suggests the difficulty of constructing such regional tables. Dietzenbacher et al. (2013) has derived a multiregional I-O table for Brazil, Meng and Yamano (2017) presented I-O data for Chinese and Japanese regions, Cherubini and Los (2016) analysed four Italian NUTS1 divisions highlighting their integration in global value chains (GVCs), Flegg and Thomo (2019) proposed a regionalization of national input-output tables for the 16 South Korean regions. Despite the importance of regional integration, there has never been a longitudinal and consistent dataset about the European regional I-O tables. ...
... Water withdrawal by sector of China's 31 regions comes from CEADs, and other countries' water resources and water withdrawal per capita are collected from the FAO [14]. However, production-based water withdrawal by sector comes from OECD [53], EXIOBASE [54] [58], and the details can be found in supplementary file 2. ...
In 2020, China launched the Dual Circulation Strategy to tackle difficult international trade situations and COVID-19. To examine the environmental pressure induced by China's domestic and international trade from the perspective of dual circulation, this study quantifies the flows of embodied energy and virtual water in China's domestic and international trade and analyzes the driving factors to the net outflow, using the multi-regional input-output model and spatial structural decomposition method. The main findings of this study are: (1) Domestic trade of China alleviated the pressures of both energy and water shortage through the flow of embodied energy from Northern to Southern and Eastern regions and the flow of virtual water from Southern to Northern regions. In contrast, international trade yet increased China's environmental burden and tends to be unsus-tainable. (2) Production structure effect was the key factor to the net outflow of embodied energy (contribution degree: 58%) and virtual water (contribution degree: 46%) to major economies. For China, the export scale effect and export structure effect played an important role in increasing the net outflow of China's embodied energy, with contribution degrees of 17% and 23%, respectively, while the export structure effect and water efficiency effect reduced the net outflow of virtual water, with contribution degrees of − 23% and − 19%, respectively. Multidimensional Policies, including industrial structure transition, renewable energy deployment, resource efficiencies improvement, trade pattern upgrade, and regional free trade promotion, are suggested for implementing the Dual Circulation Strategy, considering environmental sustainability and industrial competition advantages.
... Xing (2017) on the study showed that the competition and collaboration between industrial sectors using global industry strongest relevant network model with inter-country I-O Table. Study by Meng & Yamano (2017) developed a new framework for measuring domestic linkages to global value chains by embedding a target country's domestic interregional input-output tables into the OECD inter-country Input-Output model. Another study by Sim et al. (2007) developed a modified interregional input-output (IRIO) table especially inter-country with the economy's link using the Chenery-Moses model. ...
This study analyzes the economy of Aceh not only based on the linkage between industries but also based on the linkage between regions. The analysis used forward linkages and backward links to determine the leading sectors in Aceh. The data used is secondary data from Indonesia's 2016 Inter-Regional Input Output (IRIO) based on domestic transactions at producer prices. The data is sourced from Statistics Indonesia. The study results show that the key sectors in Aceh are Electricity and Gas and Manufacturing. These sectors have the highest spreading power (backward linkage) and sensitivity (forward linkage) because they are in the first quadrant. In addition, inter-regional linkage analysis shows that the final demand shock in Aceh has a large output impact on DKI Jakarta, North Sumatera, and Riau. On the other hand, the economy of Aceh was affected by the final demand shock from several provinces on the island of Sumatra, namely North Sumatera, Bengkulu, West Sumatera, Jambi, and Sumatra Selatan. The policy implications that can be applied to increase labor skills and management in leading sectors will have a multiplier effect on other sectors and the cooperation between provinces in a special economic zone.
... Although it features a large-scale, subnational and international IO relationship, it fails to provide high-resolution inter-regional connections inside China. Meng and Yamano [12] used China and Japan's inter-regional IO tables, the OECD inter-country IO tables, and China and Japan's regional customs statistics to compile the regionally extended inter-country IO table. However, the table segments the Chinese domestic region into four parts, namely China Coast, center, west and northeast, which is rough of China's great regional heterogeneity and large economy. ...
Scholars have attempted to compile various multi-region input-output (MRIO) tables for different countries. However, due to city-level data scarcity and methodology constraints, almost no MRIO table covers a large number of cities with more disaggregated sectors in countries with large economies, such as China. Based on two large-scale firm-level datasets, the China Annual Survey of Industrial Firms (CASIF) survey and the China Customs Data (CCD) database, from 2000 to 2013, this paper uses China as a case study and presents a new compilation method to construct an MRIO table covering 284 prefecture-level administrative cities and 334 four-digit sectors, which is by far the most comprehensive MRIO table with the largest number of cities and the most segmented industries in China. Unlike existing MRIO tables constructed based on provincial single-region IO (SRIO) tables, we use information along with various linear constraints implied by sector-level and firm-level statistics. This paper expands on the direct decomposition method by developing auxiliary econometric models necessary for estimations and consistency adjustment. In addition, a comparative analysis shows the reliability of our method, which guarantees better coherence and comparability with the MRIO officially published by the National Bureau of Statistics of China (NBS). Therefore, our proposed methodology provides the possibility of producing more disaggregated MRIO tables in other similar contexts.
... Cherubini and Los (2016) integrated subnational input-output tables for Italy into the World Input-Output Database (WIOD), in order to assess the effects of changes in the structure of value chains on regional employment patterns. Meng and Yamano (2017) comparatively analyzed the characteristics of the value distribution of domestic regions in China and Japan in GVCs. Beverelli et al. (2019) studied the role of domestic value chains (DVCs) for GVC integration. ...
Since the financial crisis, especially after the outbreak of COVID-19, the global trade division of labor has been changing rapidly. The global value chain (GVC) keeps shrinking while the domestic value chain (DVC) continues to develop. Therefore, it is important to re-examine the impact of different modes of value chain division of labor on China’s energy efficiency. In this study, we first constructed an input-output model of provinces embedded in the world to measure the dual embedding of domestic and global value chains. Then we used a three-dimensional fixed-effect model to study the impact and mechanism of dual value chain embedding on energy efficiency. We found that domestic value chain embedding inhibits energy efficiency improvement and global value chain embedding promotes energy efficiency improvement. A series of robustness and endogeneity tests support these findings. The heterogeneity tests revealed that the effects of dual value chain embedding on energy efficiency are more pronounced in low-polluting industries, high-tech industries, years before 2008, and coastal regions. The mechanism test revealed that DVC embedding inhibits energy efficiency by exacerbating the low-end lock-in effect, reducing environmental regulation and scale efficiency, and it increases energy efficiency by increasing technological progress efficiency. GVC embedding improves energy efficiency by weakening the low-end lock-in effect and increasing technical efficiency and scale efficiency, and it inhibits energy efficiency improvement by reducing environmental regulation and technological progress efficiency.
... All transactions are converted to values in dollars using the market exchange rates. The compilation of the REXI-CIO tables follows Meng and Yamano (2017). The key procedure is as follows. ...
Production fragmentation across multiple regions can result in a regional shock propagating along value chains to a wider array of regions. We propose a methodological framework to measure the economic exposure to regional value chain disruptions due to city lockdown during Covid-19. The exposure index is evaluated by applying a hypothetical extraction method to a regionally extended inter-country input–output framework incorporating China’s interregional input–output table. Our methodology can be adapted to conduct disaster impact analyses at city, state and country levels. It provides a tool for the immediate assessment of the economic risks of value chain disruptions, enabling quick policy responses.
... Economic, social and environmental performance varies between regions because regions show different specializations patterns, inter-industry linkages (both within and across regions), population densities, workers skills, to cite only a few. These aspects determine the region's vulnerability or resilience to economic downturns and climate change (Thissen et al. 2018) or their position and participation in global value chains (Meng and Yamano 2017). Malik et al. (2018) also highlight the need for a better understanding of within-countries effects of inter-regional interactions. ...
Abstract In parallel with the increasing availability of multiregional input–output (MRIO) tables, there has been a growing concern on IO modelling at lower levels of spatial disaggregation, to reflect the particular features of cities better. The urbanization process is one of the salient characteristics of the current stage of globalization, so it is imperative to know more about their global economic, social and environmental impacts. MRIO initiatives are defined at the country level, which means that we are potentially losing some key information about cities and their economic structures. In this paper, we fill this gap by putting together the IOT for the city of Bogota (Colombia) into the well-known OECD’s ICIO database. After describing the structure of both IOTs, we document the harmonization and nesting procedures in a step by step approach, focusing on the main challenges and assumptions that we have to make. Additionally, a case study has been carried out to weight the level of integration of Bogota in global value chains. The analysis proves the low level of global integration: the bulk of the valued-added generated in Bogota due to the city’s exports comes from the economy of the rest of the country and presents a significant deficit in its value-added balance. Apart, we hope it could shed some light to conduct similar adaptations for other cities.
... Wang, Geschke, and Lenzen (2017) disaggregated China in a geographical sense in the Eora global input-output database. Meng and Yamano (2017) present analytical results based on regional disaggregation of China and Japan (in turns, not simultaneously) within the OECD's Trade in value added data framework. ...
... In the analysis of the participation of national economy in the global value chains, we consider the activity not only of regions-exporters, but also of the regions delivering them components and services. These regions will be designated as the «intra-country» component of global value chains [2]. We also investigate the role of such a factor in regional export development as domestic transport. ...
The purpose of the research is to substantiate what kind of influence the import substitution has on the positioning of different types of regions in the system of international economic relations. The research is focused on two types of regions — the industrial type (the Sverdlovsk region) and the agricultural type (Rostov and Krasnodar regions). The research hypothesis is following: import substitution influences not only the replacement of imported goods by the domestic ones, but also can change regional positioning in the international economic relations system. The authors propose the methodological approach. It examines the regional economy according to three levels: a system of entities engaged in foreign economic activity; a system of the support of import substitution and export orientation in a region; a system of international economic relations. Regional positioning in the system of international economic relations is expressed in manufacture and agriculture exports and imports. Our methodological approach reveals the dependence between manufacture and agriculture exports and imports and the manufacturing and agriculture output, including correlation analysis. . We have offered a technique based on the comparative analysis of the effectiveness of import substitution in two regions’ types applying correlation analysis. The analysis has shown the interrelation of the development processes of domestic manufacturing and agriculture, their export and import in 2005–2016. The import decrease and export increase (after 2014) were mainly due to regional specialization in international division of labour. This demonstrates the results of import substitution. The research results can be used for further development of the strategies of regional international economic activity including such instruments as import substitution and export promotion. © 2018 Institute of Economics Ural Branch of the Russian Academy of Sciences.
