Territory-based and Ownershipbased Gains from Trade under the Global Production Network——An Empirica

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Under global production network,export cannot represent a country’s gains from trade,and territory-based gains from trade refer to the remainder of export after deducting the input of intermediate goods and re-export after value-added return.Ownership-based gains from trade refer to the remainder of territory-based gains from trade after further deducting the trade in value added(TVA) realized through the inflow of foreign factors.By creating a multicountry input and output model,this paper calculates the territory-based gains from trade,ownership-based gains from trade,and territory-based gains from trade for foreign countries realized through China’s export,as well as valueadded return and territory-based gains from trade for foreign countries realized through China’s import.This paper has arrived at the following conclusions:behind China’s status as the largest goods exporting country in the world,most of Chinese exports contribute to the gains of foreign countries;value addition for foreign countries realized through China’s export and value-added return realized through China’s import mostly come from Taiwan region,Japan and South Korea in East Asia;a considerable part of gains from trade for the United States realized through China-US trade is achieved through indirect trade. Under global production network, export can not represent a country’s gains from trade, and territory-based gains from trade refer to the remainder of export after deducting the input of intermediate goods and re-export after value-added return. Ownership-based gains from trade refer to the remainder of territory-based gains from trade after further deducting the trade in value added (TVA) realized through the inflow of foreign factors.By creating a multicountry input and output model, this paper calculates the territory-based gains from trade, ownership-based gains from trade, and territory-based gains from trade for foreign countries realized through China’s export, as well as valueadded return and territory-based gains from trade for foreign countries realized through China’s import. This paper has arrived at the following conclusion behind China’s status as the largest goods exporting country in the world, most of Chinese exports contribute to the gains of foreign countries; value addition fo r foreign countries realized through China’s export and value-added return realized through China’s import mostly come from Taiwan region, Japan and South Korea in East Asia; a considerable part of gains from trade for the United States realized through China-US trade is achieved through indirect trade.
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