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Trade in Value Added : An East Asian Perspective

Author

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  • Satoshi Inomata

    (Asian Development Bank Institute (ADBI))

Abstract

This paper aims to provide a non-technical explanation of the concept of trade in value added, with particular reference to East Asia. The trade in value added approach allows us to redefine the relationship between countries of origin and destination in international trade, and thereby addresses an important issue of measuring international trade in the face of growing production sharing among different countries. In contrast to the orthodox concept of trade balances based on foreign trade statistics, it focuses on the value added contents of a traded product, and considers each country’s contribution to the value added generation in a production process.

Suggested Citation

  • Satoshi Inomata, 2013. "Trade in Value Added : An East Asian Perspective," Trade Working Papers 23855, East Asian Bureau of Economic Research.
    • Handle: RePEc:eab:tradew:23855
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    File URL: http://www.eaber.org/node/23855
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    Citations

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    Cited by:

    1. Murat A. Yülek, 2017. "On the Middle Income Trap, the Industrialization Process and Appropriate Industrial Policy," Journal of Industry, Competition and Trade, Springer, vol. 17(3), pages 325-348, September.
    2. Helble, Matthias & Ngiang, Boon-Loong, 2016. "From global factory to global mall? East Asia’s changing trade composition and orientation," Japan and the World Economy, Elsevier, vol. 39(C), pages 37-47.
    3. Paul J.J. Welfens & Evgeniya Yushkova, 2018. "IKT-Sektor in China und Wirtschaftsbeziehungen zu Deutschland," EIIW Discussion paper disbei244, Universitätsbibliothek Wuppertal, University Library.
    4. Richard Baldwin & Tadashi Ito, 2021. "The smile curve: Evolving sources of value added in manufacturing," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 54(4), pages 1842-1880, November.
    5. repec:era:wpaper:dp-2015-72 is not listed on IDEAS
    6. Helble, Matthias & Ngiang, Boon-Loong, 2014. "From Global Factory to Global Mall: East Asia’s Changing Trade Composition," ADBI Working Papers 496, Asian Development Bank Institute.

    More about this item

    Keywords

    trade in value added approach; East Asia; production sharing; trade statistics;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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