An Analysis of the Internal and External Relations of the Shanghai Economy Based
Abstract
In the past two decades, the internal structure of Shanghai's economy and the relationship between Shanghai's economy and the international and domestic markets have undergone significant changes. This paper examines the change in Shanghai’s internal economic structure and the linkages of Shanghai’s economy with the rest of China (ROC) and the rest of the world (ROW) based on the input-output tables of 1997, 2002, 2007, 2012, and 2017. The results indicate that Shanghai’s economy has become integrated more with the ROW than with ROC before 2008, but after the 2008 financial crisis, the opposite phenomenon has happened. Concerning ROC, Shanghai is more of a supplier than a source of demand. Concerning ROW, however, Shanghai is both a supplier and a source of demand, reflecting a high degree of integration of Shanghai with the world market and the rest of China.