Global or Regional Value Chains? Evidence from China

We document the regional characteristics in China’s global value chains. In contrast to the previous related literature, we focus on the right definition of domestic value added (DVA) in bilateral–sector exports and study the heterogeneity of the share of DVA finally absorbed abroad in exports (DVA ratio) across bilateral trade partners. We find that China’s DVA ratio within the “Asian factory” region is smaller and declines more over time than...