In this paper we construct an extended non-competitive input-occupancy-output model that captures China＇s processing trade and also develop a methodology to estimate the domestic value-added and employment generated by each unit of total exports, of exports by sector, and of exports by commodity, respectively. We also prove mathematically that the gross value of exports is equal to the sum of total value added and total imports. Based on the methodology proposed here, we compile the 2002 extended Chinese non-competitive input-occupancy-output table and the United States non-competitive input-occupancy- output table, and then estimate and analyze the effects of China＇s exports and US exports on their respective domestic value added and employment.
Lawrence J. LauXikang ChenCuihong YangLeonard K. ChengK. C. FungYun-Wing SungKunfu ZhuJiansuo PeiZhipeng Tang
