《Table 1:Trans-national Input-Output Table:A 2-country 1-Sector Case》

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《Re-Evaluation of China's Service Trade Competitiveness: A Global Value Chain Perspective》

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This paper first uses a simple“2-country 1-sector”model to explain the method for decomposing domestic value-added in the export of a country’s specific sector.As shown in Table 1，there are two countries，Country S and Country R，where Yi is the total output of Country i（=S，R），and Zij is the consumption of intermediate input from Country i required for Country j to generate its total output，and Vi is the value-added in Country i’s total output.A country’s total output equals the sum of intermediate use and final use，which can be expressed as: