Achieving inclusive growth in China through vertical specialization / Wei Wang.

Includes bibliographical references and index.

Front Cover -- Achieving Inclusive Growth in China Through Vertical Specialization -- Copyright Page -- Contents -- About the author -- Acknowledgments -- 1 Introduction: key elements of a transformation in China -- 1.1 Background -- 1.2 Six components of the problem of inclusive growth in China -- 1.3 Analytical framework -- 1.3.1 What are the overall messages of the book? -- Appendix -- 2 The evolving pattern of China's free trade from a vertically specialized perspective during the transition to inclusive g ... -- 2.1 Introduction -- 2.2 An overview of inclusive growth in China: policies and practices -- 2.3 Comparative advantage and patterns of China's foreign trade: 1981-2012 -- 2.3.1 Net exports -- 2.3.2 Michaely index -- 2.4 Concluding remarks and policy implications -- 3 Vertical specialization and enlarging the size of the economy: comparing impacts of conventional trade and processing tra ... -- 3.1 Introduction -- 3.2 The nature of the relationship between trade openness and economic growth -- 3.3 Empirical evidence of the impact of vertically specialized trade policy on the economic growth in China -- 3.3.1 Methodology and data -- 3.3.2 Unit root test for stationarity -- 3.3.3 Results of Johansen's cointegration tests -- 3.3.4 The vector error correction model -- 3.3.5 Granger causality tests -- 3.3.6 Impulse response function -- 3.3.7 Variance decomposition -- 3.4 Concluding remarks and policy implications -- Appendix A: Variables grouping -- Appendix B: The results of unit root tests -- Appendix C: Results of cointegration tests -- Appendix D: Results of vector error correction model -- Appendix E: VEC Granger causality/block exogeneity Wald tests -- Appendix F: Impulse responses function -- Appendix G: Results of variance decomposition.

Vertical Specialization and Inclusive Growth in China discusses the two interrelated developments that have transformed the Chinese economy in recent years. First, the global community has increased calls to foster inclusive economic growth, with China embracing this trend. Second, the explosive growth in China's trade resulting from international vertical specialization production and trade networks which has complicated the notion of inclusive growth in the Chinese context. This book assesses these two trends quantitatively, giving evidence of the link between vertical specialization and inclusive growth, and then decomposing the inclusive growth effects of vertically specialized trade into six components: GDP growth, export growth, FDI, environment, employment, and innovation. It further explores the differing impact of conventional trade and processing trade on inclusive growth, providing direction for future policy. This second book by the author to consider vertical specialization stresses the importance of integration in driving inclusive growth. Argues that inclusive growth and vertical specialization analyses must be performed together Gives quantitative evidence for the link between vertical specialization and inclusive growth in China Investigates the different impact of conventional trade and processing trade on transition to inclusive growth in China, using comparative analysis techniques Offers insight on forming future policy in China to increase inclusive growth.