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The Value-added Structure of Gross Exports and Global Production Network

Author

Listed:
  • Koopman, Robert
  • Wang, Zhi
  • Wei, Shang-Jin

Abstract

This paper first refines a methodology in KPWW (2011) that completely decomposes a country’s gross exports into its value-added components. By identifying which parts of such value-added are “double counted,” it bridges official trade statistics and national accounts, making the standard measure of trade consistent with SNA standards. We implement the decomposition on a database of global production and trade covering 62 countries/regions and 41 industries from version 8 of the Global Trade Analysis Project (GTAP) database for 2007 with additional processing trade information from China and Mexico. We recompute the RCA index at the country-sector level for all the countries and sectors in our database using domestic content in exports and compare them with RCA index based on traditional trade statistics.

Suggested Citation

  • Koopman, Robert & Wang, Zhi & Wei, Shang-Jin, 2012. "The Value-added Structure of Gross Exports and Global Production Network," Conference papers 332182, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
  • Handle: RePEc:ags:pugtwp:332182
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    File URL: https://ageconsearch.umn.edu/record/332182/files/5839.pdf
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