Regional and national value chain in the Yangtze River Delta: interactions, value-added flows and trade gains

This study investigates the interaction between Yangtze River Delta Value Chain (YRDVC) and national value chain (NVC) in China, focusing on value-added flows and trade gains in manufacturing. Using an adjusted MRIO (2012–2017) covering 41 YRD cities and 27 non-YRD provinces/municipalities, we decompose regional outflows into eight components to analyse bidirectional value-added supply–demand dynamics. Key findings reveal that YRD manufacturing industries increasingly depend on intra-regional value-added demand, forming strong provincial linkages, while coastal provinces/municipalities exhibit higher reliance on foreign inputs. Domestic provinces/municipalities demonstrate ‘polarized’ but non-neighbouring value-added interactions, with Guangdong and Henan emerging as dual hubs for cross-regional supply–demand exchanges. YRD cities, like Shanghai and Suzhou, achieved higher gains from participating in YRDVC than NVC. Anhui’s integration into YRDVC, though slower, shows rising gains in post-regional coordination policies. The study underscores the importance of synergizing regional and national value chain through unified domestic markets and intra-regional collaboration to enhance manufacturing competitiveness.