Genuine performance of China's forest products trade: An evaluation from the perspective of global value chains

Xiong, Lichun; Zhao, Hongyu; Wang, Fengting; Cheng, Baodong

doi:10.1016/j.forpol.2022.102823

Cited by 4 publications

(4 citation statements)

References 15 publications

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“…From the results of the changes in the product quality of China's wood forest exports, it was found that there are differences in the quality levels of subdivisions of wood forest products. China has targeted more promising markets and is continuously increasing the value added of its export products [43]. The export product quality of wood-based panels is relatively high, while there is considerable room for improvement in the product quality of paper products and wood furniture.…”

Section: Conclusion and Discussionmentioning

confidence: 99%

Export Growth and Quality Determination of Wood Forest Products: Evidence from China

Wan,

Ban,

et al. 2023

Forests

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The rapid-developed scale of China’s trade in wood forest products has undergone a considerable uptick. Concomitant with the evolution of high-quality development paradigms, product quality within trade frameworks has gained escalating scrutiny. Based on the statistical analysis of the export characteristics of China’s wood forest products, this study leverages BACI data spanning from 1998 to 2017. Utilizing regression-based inverse methods, the study quantifies the quality attributes of these export products, dissects fluctuations in quality, and places particular emphasis on the markets within “Belt and Road Initiative” economies to elucidate dynamic trends and spatial distribution characteristics of export quality in this geoeconomic domain. Based on this, the fixed effect model, random effect model, and system GMM are used to empirically examine the influencing factors of China’s wood forest product export quality. This study found that wood-based panel products have the highest quality, followed by paper products and wood furniture among the three major categories of wood forest products. Besides, the overall quality levels of the three products exported to countries participating in the Belt and Road initiative haven’t significantly changed, while notable changes are evident across divergent export destination markets. In addition, an empirical study on the influencing factors of the export product quality of wood forest products is conducted, which indicates that total factor productivity, R&D investment, capital intensity, labor costs, and foreign direct investment are influencing factors. Finally, based on the research conclusions, suggestions are provided on how to improve the export quality of wood forest products.

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Section: Conclusion and Discussionmentioning

confidence: 99%

Export Growth and Quality Determination of Wood Forest Products: Evidence from China

Wan,

Ban,

et al. 2023

Forests

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“…In particular, compared to economies with similar world market shares, China's forestry industry is big but not strong. By decomposing WIOD, Xiong et al (2022) similarly found that the domestic value-added (DVA) ratio of Chinese forest product exports was about 80%, and the genuine performance of China's forest product exports was overestimated [36].…”

Section: "Big Yet Not Strong" Is Still the Issue For China's Forestry...mentioning

confidence: 99%

The Status, Trend, and Global Position of China’s Forestry Industry: An Anatomy Based on the Global Value Chain Paradigm

Jiang,

2023

Forests

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This study aims to systematically examine the developmental attributes and trends within China’s forestry sector through the lens of a global value chain (GVC) framework. To this end, this research analyzes the Organization for Economic Co-operation and Development Inter-Country Input–Output (OECD-ICIO) database, using a cohesive set of GVC methods, including the forward decomposition of industry value-added, an assessment of industry upstream and downstream positions, the decomposition of export values, and analysis of trade competitiveness indicators. The trajectory of China’s forestry industry hinges upon the interplay between foreign demand and domestic demand. The results reveal a transition in China’s forestry sector development model from export-focused to a domestically driven approach. The proportion of value-added that is devoted to meeting domestic demands within the wood processing and papermaking industries has surged to 76% and 82%, respectively. Among the major economies, China has the highest output upstream index and input downstream index in the forestry industry, playing a vital role in propelling and pulling other industries into the global value chain system. The proportion of domestic added-value in China’s forestry industry exports ranks among the top, reflecting strong self-sufficiency in export production. Although China’s forestry industry possesses a high world market share, its overall international competitiveness is weak, especially with clear signs of weakening comparative advantages in the wood processing industry.

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“…Under the influence of the Sino-US trade friction, the global value chain of Argo-forest products may be split and reform many other value chains, thus triggering the restructuring of the global value chain of related products. With the gradual weakening of Argo-forest trade cooperation between China and USA, new value chains and new trade cooperation patterns are taking shape step by step, which is not favorable for the efficient allocation of existing global Argo-forest resources and will lead to a rising in the cost of world's related trade [2].…”

Section: The Shock On the Value Chainmentioning

confidence: 99%

“…Although the unilateral trade war driven by the United States is aimed at safeguarding their interests, it objectively damages the mutually beneficial and win-win trade pattern which is already built between those two nations. Sino-US trade friction will dissever and reconstruct the global value chain of Argo-forest products [2], this is also reflected in the relevant areas of others. Trade friction has affected the supply & demand chains of numerous products in China, and the value chain between China and USA has been implicated likewise.…”

Section: Introductionmentioning

confidence: 99%

The Impact of Sino-Us Trade Friction on China’s Argo-forest Products: Stylized Facts and Prospect

Wu¹

2023

HBEM

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Sino-US trade friction is a crucial issue in the economic relationship between China and the USA. This paper analyzes how friction influences the bilateral trade of agroforestry products from the perspective of changes in trade volume, using recent-year data. The results show that Sino-US trade friction dissevers and reconstructs the global value chain of agroforestry products. This variation imposes more harm than good on the related global trade pattern. Furthermore, this paper lists and illustrates three measures taken by the Chinese government to deal with the trade friction: expanding the alternative market to meet domestic demand and fill the supply gap, improving the added value to ameliorate the structure of foreign trade and enhancing core competitiveness, and establishing an early warning mechanism to guard against abnormal changes in the international market and increase trade security. Finally, in response to the situation of trade friction, this paper puts forward two politically-sound suggestions that should be adopted by China and the USA for rebuilding a mutually beneficial pattern: negotiating rationally and following the rules of the WTO.

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Genuine performance of China's forest products trade: An evaluation from the perspective of global value chains

Cited by 4 publications

References 15 publications

Export Growth and Quality Determination of Wood Forest Products: Evidence from China

Export Growth and Quality Determination of Wood Forest Products: Evidence from China

The Status, Trend, and Global Position of China’s Forestry Industry: An Anatomy Based on the Global Value Chain Paradigm

The Impact of Sino-Us Trade Friction on China’s Argo-forest Products: Stylized Facts and Prospect

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