Re-measuring Status of China’s High-Tech Industries in International Division of Labor: Applying a Non-Competitive Input-Output Model*

HUANG Xianhai¹ and YANG Gaoju²

• Professor and vice dean, College of Economics, Zhejiang University, Hangzhou ² Postdoctoral fellow, College of Economics, Zhejiang University, Hangzhou

Abstract: Based on a refined “ non-competitive input-output model,” this paper proposes a new framework for analyzing the status of a country’s high-tech industries in the international division of labor,

i.e. calculates the index of “ weighted value-added productivity” by compiling non-competitive input-output tables which distinguish high-tech industries from traditional industries. The new method effectively avoids “ statistical illusion” which stems from a biased focus on gross exports under intra-product specialization. The empirical study shows that since 1995, the status of China’s high-tech industries has grown quickly as a result of enhanced labor productivity, but still lags behind those of major developed countries. In addition, the study also suggests that the status of China’s high-tech industries has been over-estimated

using the traditional gross export statistical method.

Keywords: high-tech industry, international division of labor, non-competitive input-output model

on-competitive input-output model

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