| Abstract | This paper considers both global value chains and domestic value chains, builds for the first time a framework tracing value added in one country’s exports at the regional level. Then, based on this framework, this paper traces value added in China’s exports at the provincial level, and makes some applications. The results reveal that: (1) Among the sources of values of every province’s exports, domestic value added has the highest share. The level of development has negative and positive correlations with the share of domestic value added and the share of foreign vertical specialization respectively. (2) The gap among every province’s exports will narrow if measured by value added exports. The province-industry with comparative advantage tend to provide more value added to other provinces. China’s low ratio of domestic value added in exports is mainly due to low ratio of value added exports to gross exports in manufacturing industries in coastal provinces. (3) There are differences between revealed comparative advantage measured by value added exports and gross exports; and as for many province-industries, the revealed comparative advantage even reverses. As for most provinces, the level of export specialization measured by value added exports is less than it measured by gross exports. Finally, the studies provide some basic value added data at province level for China’s corresponding research. |