How the Makeup of Imports of Intermediate Goods Affects the Makeup of Exports of Final Goods in the Manufacturing Sector: An Empirical Analysis Based on Chinese Data

With the formation of global value chains, trade in intermediate goods has become an important part of international trade. Therefore, a study of how the composition of the intermediate goods imports affects the composition of final goods exports is crucial. In this paper, the authors perform an empirical analysis of the import and export data on the trade in intermediate and final goods in China. The results show that the import of semi- finished products and spare parts are the main drivers of exports of capital goods and that imports of primary products are the main drivers of exports of final consumer goods. The weight of exports of final goods from China is shifting from labor- intensive goods to technology- intensive goods. Finally, the results show that China's position in international production networks has improved.