The Study Of Chinese Virtual Water Trade Based On Input-output Analysis

China is one of the13most water shortage countries in the world, the security of water isa problem should be solved urgently to sustain the development of China’s economy.In this thesis, we introduced a concept named virtual water, systematically described thecomputational model of virtual water trade. On the basis of <Input-Output Table>, wecalculated and analyzed virtual water coefficient and virtual water trade quantity among17industries in China according to the theory of input-output analysis in the year of2000，2002,2005and2007. This study showed that China is a net exporter of virtual water in theseyears and the net export of virtual water of China is66.782billion cubic meters in total. LightIndustry and Service are the main net export industries while Agriculture and Heavy Industryare the main net import industries. The complete water used coefficient is reducing year byyear, and the proportion of indirect water used coefficient in most industries is very high.Next, we use LMDI to analyze the vary of virtual water from trade size, trade structureand water use intensity. The study showed that trade size effect is the key factor to increasingthe virtual water trade. The intensity effect is an important factor to reduce the virtual watertrade. The structure effect may be positive or negative.Last, we recommend some advice from technological innovation, structural optimization,scale control, Service development, change water consumption and investment to improve theharmonious and sustainable development between natural and economic.