Firms, Organization and Global Value Chains in International Trade : Transactional Trade Data and the Fragmentation of Production in China

The fragmentation of international production raises a host of problems in our ability to measure and understand the international economy. Global value chains is one leading approach, but scholars point to several limitations, most prominently aggregating from firm-level observations to national development. This paper develops novel measurements by utilizing a unique Chinese transactional trade database, which records every import and export transaction. It applies them to GVC theory to help resolve these limitations, build bridges to other theoretical approaches, make aggregate estimations of GVC-organized trade, and raise questions about the foundations of China’s manufacturing and export prowess