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A multi-regional input-output database linking Chinese subnational regions and global economies
Xiaoqing Hou1, Jiali Zheng2,3, Minna He1
1The School of Management, Xi'an Jiaotong University, Xi'an, 710049, China.
Abstract:
Recent efforts of nation states to enhance resilience and restructure global industry, supply chains, and value chains have intensified the dual economic structure that shapes flows at both domestic and international levels. Multi-regional input-output (MRIO) tables provide a quantitative approach to capture inter-regional and inter-sectoral economic flows. Existing MRIO databases mainly consist of international MRIO and subnational MRIO, respectively. However, they lack coupling MRIO tables and thus fail to adequately represent the dual structure of subnational and international trade. In this study, we develop a subnational and international coupling (SIC) MRIO in 2017, covering 30 sectors, 30 provinces in China and 66 countries & economies. We employ macro-level aggregated data, micro-level structural data and large language models (LLMs) to construct the SIC method. Our SIC MRIO captures the interplay between international and subnational economic flows, reflecting the emerging dual structure of production and consumption networks in the global landscape. It can serve as a baseline for future studies of the economic and environmental implications of chains under the dual structure.
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