China's domestic production networks

This paper examines China's domestic production networks. It uses VAT invoices to build inter-provincial input-output tables for 2002 and 2012. These are combined with population censuses determine the location of workers involved in production. We document i) increased trade intermediate inputs between provinces; ii) fragmentation that differs by product; iii) substitution foreign intermediates, resulting value added exports. Information about occupations suggest iv) richer coastal areas such as Beijing, Tianjin, Shanghai specialize R&D marketing activities, whereas v) inland provinces activities.