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Are global value chains receding? The jury is still out. Key findings from the analysis of deflated world trade in parts and components

Author

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  • Guillaume Gaulier

    (Université Paris 1 Panthéon-Sorbonne)

  • Aude Sztulman

    (PSL, Université Paris-Dauphine, LEDa)

  • Deniz Ünal

    (CEPII)

Abstract

In this article, we examine the dynamics of Global Value Chains (GVCs) since the 2000s. Did it show a marked expansion up to the Great Recession and did GVCs begin a downturn in the 2010s? To better understand the evolution of GVCs at the world level, we use very detailed trade data for 2000 to 2016, which distinguishes different production stages along the GVC. In particular, among intermediate goods, we focus on Parts and Components (P&C) rather than semi-finished products since the manufacture of P&C corresponds to activities more embedded in GVCs. We control, also, for the global business cycle and price effects using an original production stages deflator based on detailed bilateral trade unit-values. This new GVC indicator shows moderate growth over the study period with no trend reversal. In the electronics sector, where GVCs are particularly well-developed, we observe contrasting effects: the share in P&C trade for office machinery and computers has decreased, while it has increased in the case of telecommunications equipment, the flagship IT revolution industry. Also, counts of clients or suppliers by stages of production indicate higher and growing geographical diversity for P&C.

Suggested Citation

  • Guillaume Gaulier & Aude Sztulman & Deniz Ünal, 2019. "Are global value chains receding? The jury is still out. Key findings from the analysis of deflated world trade in parts and components," Working Papers DT/2019/03, DIAL (Développement, Institutions et Mondialisation).
  • Handle: RePEc:dia:wpaper:dt201903
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    2. Evgeny N. SMIRNOV & Sergey A. LUKYANOV, 2019. "Assessment of the transforming impact of global value chains on international trade," Upravlenets, Ural State University of Economics, vol. 10(3), pages 36-46, July.
    3. Silvia Fabiani & Alberto Felettigh & Claire Giordano & Roberto Torrini, 2019. "Making room for new competitors. A comparative perspective on Italy’s exports in the euro-area market," Questioni di Economia e Finanza (Occasional Papers) 530, Bank of Italy, Economic Research and International Relations Area.
    4. Lema, Rasmus & Pietrobelli, Carlo & Rabellotti, Roberta & Vezzani, Antonio, 2021. "Deepening or delinking? Innovative capacity and global value chain participation in the ICT sectors," MERIT Working Papers 2021-007, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    5. Escaith, Hubert & Khorana, Sangeeta, 2020. "Mapping the Commonwealth Countries’ Participation in Global Value Chains," MPRA Paper 104441, University Library of Munich, Germany.
    6. Stefan Pahl & Marcel P. Timmer, 2020. "Do Global Value Chains Enhance Economic Upgrading? A Long View," Journal of Development Studies, Taylor & Francis Journals, vol. 56(9), pages 1683-1705, July.
    7. Yi Wang & Yingming Zhu & Maojun Yu, 2023. "Identification of the most suitable areas for the development of headquarters economy in China: a theoretical framework and empirical case study," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(10), pages 11487-11515, October.
    8. Jaime de Melo & Anna Twum, 2020. "Supply chain trade in East Africa: Prospects and challenges," Working Papers hal-02493410, HAL.
    9. Pierre Cotterlaz & Guillaume Gaulier & Aude Sztulman & Deniz Ünal, 2024. "Pioneering a new classification: a comprehensive study of healthcare products in global trade," Working Papers DT/2024/01, DIAL (Développement, Institutions et Mondialisation).
    10. Marcel P. Timmer & Bart Los & Robert Stehrer & Gaaitzen J. Vries, 2021. "Supply Chain Fragmentation and the Global Trade Elasticity: A New Accounting Framework," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 69(4), pages 656-680, December.
    11. Archanun Kohpaiboon & Juthathip Jongwanich, 2021. "The Effect of the COVID-19 Pandemic on Global Production Sharing in East Asia," Working Papers DP-2021-03, Economic Research Institute for ASEAN and East Asia (ERIA).
    12. Pierre Cotterlaz & Guillaume Gaulier & Aude Sztulman & Deniz Ünal, 2024. "Pioneering a new classification: a comprehensive study of healthcare products in global trade," Working Papers 2024-02, CEPII research center.

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    More about this item

    Keywords

    Global value chains; Parts and Components – P&C; Trade in volume; Electronics;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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