Measuring value circulation in regional chains
Abstract
Since Hummels, Ishii and Ye (2001) seminal work there have been lots of proposals for measuring participation in global value chains with input-output tables. Conjointly to the development of measures, several projects created Inter-Country Input-output tables. To the extent that integrating data of different origins requires strong assumptions and confidence in sources, some projects keep more detailed inter country input-output tables at a regional level. In this paper I adapt two of the most complete methods conceived for global Input-output tables to the case of regional tables, and I use them to analyze the intraregional value chain trade of South America. Besides characterizing the trade in this region, this paper identifies and asses the differences between adaptations of Borin and Mancini (2019) source-based decomposition of gross exports and the Wang, Wei and Zhu (2018) method.
Keywords:
Trade in value Added, Global value Chains, Regional integration, inter-country input-output tablesReferences
Baldwin, Richard E. (2012). “WTO 2.0: Global Governance of Supply-Chain Trade.” 64. Policy Insight. Centre for Economic Policy Research.
Banacloche, Santacruz, María Ángeles Cadarso, and Fabio Monsalve. (2020). “Implications of Measuring Value-added in Exports with a Regional Input-Output Table. A Case of Study in South America.” Structural Change and Economic Dynamics 52 (March): 130–40. https://doi.org/10.1016/j.strueco.2019.08.003.
Borin, Alessandro, and Michele Mancini. (2015). “Follow the Value-added: Bilateral Gross Export Accounting.” Bank of Italy Temi Di Discussione (Working Paper) No 1026.
Borin, Alessandro, and Michele Mancini. (2019). “Measuring What Matters in Global Value Chains and Value-Added Trade.” Policy Research Working Paper 8804. The World Bank.
Caliendo, Lorenzo, and Fernando Parro. (2015). “Estimates of the Trade and Welfare Effects of NAFTA.” The Review of Economic Studies 82 (1): 1–44.
CEPAL, NU. (2016). “La Matriz de Insumo-Producto de América Del Sur: Principales Supuestos y Consideraciones Metodológicas,” Documentos de Proyectos, 702.
Daudin, Guillaume, Christine Rifflart, and Danielle Schweisguth. (2011). “Who Produces for Whom in the World Economy?” Canadian Journal of Economics/Revue Canadienne d’économique 44 (4): 1403–1437.
Eaton, Jonathan, and Samuel Kortum. (2002). “Technology, Geography, and Trade.” Econometrica 70 (5): 1741–1779.
European Commission. (2018). “EU Inter- Country Supply, Use and Input-output Tables (FIGARO Project).” European Commission.
Hummels, David, Jun Ishii, and Kei-Mu Yi. (2001). “The Nature and Growth of Vertical Specialization in World Trade.” Journal of International Economics, Trade and Wages, 54 (1): 75–96. https://doi.org/10.1016/S0022-1996(00)00093-3.
IDE JETRO. (2010). “Asian International Input-output Tables 2005.” Institute of Developing Economies. Japan External Trade Organization.
Johnson, Robert C. 2018. “Measuring Global Value Chains.” Annual Review of Economics 10: 207–236.
Johnson, Robert C., and Guillermo Noguera. (2012). “Accounting for Intermediates: Production Sharing and Trade in Value-added.” Journal of International Economics 86 (2): 224–36. https://doi.org/10.1016/j.jinteco.2011.10.003.
Johnson, Robert C., and Guillermo Noguera. (2017). “A Portrait of Trade in Value-Added over Four Decades.” The Review of Economics and Statistics 99 (5): 896–911. https://doi.org/10.1162/REST_a_00665.
Koopman, Robert, Zhi Wang, and Shang-Jin Wei. (2014). “Tracing Value-Added and Double Counting in Gross Exports.” American Economic Review. 104 (2): 459–94
Lenzen, Manfred, Daniel Moran, Keiichiro Kanemoto, and Arne Geschke. (2013). “Building Eora: A Global Multi-Region Input–Output Database at High Country and Sector Resolution.” Economic Systems Research 25 (1): 20–49.
Los, Bart, and Marcel P. Timmer. (2020). “Measuring Bilateral Exports of Value-added: A Unified Framework.” In The Challenges of Globalization in the Measurement of National Accounts. University of Chicago Press.
Los, Bart, Marcel P. Timmer, and Gaaitzen J. de Vries. (2016). “Tracing Value-Added and Double Counting in Gross Exports: Comment.” American Economic Review 106 (7): 1958–66.
Miroudot, Sebastien, and Ming Ye. (2018). “A Simple and Accurate Method to Calculate Domestic and Foreign Value-Added in Gross Exports.” MPRA Paper. September 1, 2018. https://mpra.ub.uni-muenchen.de/89907/.
Nagengast, Arne J., and Robert Stehrer. (2016). “Accounting for the Differences between Gross and Value-added Trade Balances.” The World Economy 39 (9): 1276–1306.
Timmer, Marcel P., Erik Dietzenbacher, Bart Los, Robert Stehrer, and Gaaitzen J. Vries. (2015). “An Illustrated User Guide to the World Input–Output Database: The Case of Global Automotive Production.” Review of International Economics 23 (3): 575–605.
Tsigas, Marinos, Zhi Wang, and Mark Gehlhar. (2012). “How a Global Inter-Country Input-Output Table with Processing Trade Account Can Be Constructed from GTAP Database.” In Conference on Global Economic Analysis, Geneva. https://www.gtap.agecon.purdue.edu/resources/download/5998.pdf.
Wang, Zhi, Shang-Jin Wei, Xinding Yu, and Kunfu Zhu. (2017a). “Characterizing Global Value Chains: Production Length and Upstreamness.” 23261. National Bureau of Economic Research.
Wang, Zhi, Shang-Jin Wei, Xinding Yu, and Kunfu Zhu. (2017b). “Measures of Participation in Global Value Chains and Global Business Cycles.” 23222. National Bureau of Economic Research.
Wang, Zhi, Shang-Jin Wei, and Kunfu Zhu. (2018). “Quantifying International Production Sharing at the Bilateral and Sector Levels.” Working Paper 19677. National Bureau of Economic Research. https://doi.org/10.3386/w19677.
World Bank. (2019). World Development Report 2020: Trading for Development in the Age of Global Value Chains. World Bank Publications.
Yi, Kei-Mu. (2003). “Can Vertical Specialization Explain the Growth of World Trade?” Journal of Political Economy 111 (1): 52–102.
