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The Value-Added Content of International Trade: New Data, New Perspectives

Author

Listed:
  • Rahel Aichele
  • Gabriel Felbermayr
  • Inga Heiland

Abstract

The monitoring of bilateral trade balances is only of limited relevance when it comes to economic policy analysis. The key aspect is the added-value of trade, for this is responsible for domestic prosperity, for wage levels, capital income and tax revenues. The official trade statistics, which also cover external value creation, tend to differ significantly from the adjusted data. The first results of an Ifo research project that calculates bilateral value creation chains, show, for example, that Germany’s net added-value in the GIPS countries is overestimated by around 20%.

Suggested Citation

  • Rahel Aichele & Gabriel Felbermayr & Inga Heiland, 2013. "The Value-Added Content of International Trade: New Data, New Perspectives," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 66(05), pages 29-41, March.
    • Handle: RePEc:ces:ifosdt:v:66:y:2013:i:05:p:29-41
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    References listed on IDEAS

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    1. Rudolfs Bems & Robert C. Johnson & Kei-Mu Yi, 2011. "Vertical Linkages and the Collapse of Global Trade," American Economic Review, American Economic Association, vol. 101(3), pages 308-312, May.
    2. Hans-Werner Sinn, 2005. "Bazaar Economy GermanyWorld Champion Exporter or Laggard?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 58(06), pages 03-42, March.
    3. Robert Koopman & William Powers & Zhi Wang & Shang-Jin Wei, 2010. "Give Credit Where Credit Is Due: Tracing Value Added in Global Production Chains," NBER Working Papers 16426, National Bureau of Economic Research, Inc.
    4. Johnson, Robert C. & Noguera, Guillermo, 2012. "Accounting for intermediates: Production sharing and trade in value added," Journal of International Economics, Elsevier, vol. 86(2), pages 224-236.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Martin Braml & Feodora Teti & Rahel Aichele, 2020. "Pharmacy of the World or at the Mercy of the World Economy? Germany’s Foreign Trade in the Market for Drugs and Medical Equipment," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 73(05), pages 35-42, May.
    2. Gabriel Felbermayr & Marina Steininger, 2016. "Wie gefährlich ist die angekündigte Handelspolitik von Donald Trump?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 69(22), pages 34-41, November.
    3. Rahel Aichele & Gabriel Felbermayr & Inga Heiland, 2013. "News from the Bazaar Economy," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 66(06), pages 17-28, March.
    4. Lisandra Flach & Marina Steininger, 2020. "Effects on Foreign Trade," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 73(07), pages 17-23, July.

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    More about this item

    JEL classification:

    • F01 - International Economics - - General - - - Global Outlook
    • F10 - International Economics - - Trade - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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