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This paper finds that, value added induced by per unit of final demand has decreased in China from 2002 to 2007, by employing non-competitive input-output model capturing processing trade. To explore the reason why it decreased, the paper proposes a modified structural decomposition analysis (SDA) method, considering the characteristic of multi-regional input-output table. By using this method, one not only can decompose the technology coefficients into substitution effect and fabrication effect, but also can evaluate the contribution of each region to the change of dependent variables. The results show that decreasing value-added ratio and change of final demand structure of domestic enterprises' products are the main causes of the decrease. Meanwhile, substitution of foreign invested enterprises' products to imports has inhibited this decline effectively. [ABSTRACT FROM AUTHOR]

This paper proposes a new input-output model, which is called non-competitive input-output model capturing foreign-funded enterprise and trade pattern. The model divides the economy into six parts in view of the great difference in production technology and structure between domestic enterprises and foreign-funded enterprises, and between processing export and non-processing export. The paper also compiled the corresponding table of 2007 for the new model, and estimated the different contribution of domestic enterprises and foreign-funded enterprises to China and the close relationship between them by using the new model. [ABSTRACT FROM AUTHOR]

In this paper, the widely accepted Almon procedure was extended to estimate industry-by-industry IO tables based on fixed industry sales structure assumption to avoid negative flows. Based on the Almon procedure's point of avoiding negative flows during iteration and derivation formula of the fixed industry sales structure assumption, we constructed iterative formula, and adopted scale factors in the part where negative entries may arise to avoid negative flows in every iterative step. Also, we gave intuitive interpretations for iterative formula and scale factors. To test the validity of the method, empirical comparison between the extended Almon procedure and the traditional approach is employed. The extend Almon procedure is proved to have better performance than the traditional method, since it yields more accurate estimation than that of traditional method, against the official survey-based IO table. [ABSTRACT FROM AUTHOR]