Who produces for whom in the world economy?
Abstract
For nearly two decades, the share of trade in inputs, also called vertical trade, has dramatically increased. This paper suggests a new measure of international trade: “value-added trade”. Like many existing estimates, “value-added trade” is net of double-counted vertical trade. It also reallocate trade flows to their original input-producing industries and countries and allows to answer the question “who produces for whom”. In 2004, 27% of international trade were "only" vertical specialization trade. The sector repartition of value-added trade is very different from the sector repartition of standard trade. Value-added trade is less regionalized than standard trade.Download Info
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Paper provided by Observatoire Francais des Conjonctures Economiques (OFCE) in its series Documents de Travail de l'OFCE with number 2009-18.Length:
Date of creation: 2009
Date of revision:
Handle: RePEc:fce:doctra:0918
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Related research
Keywords: Globalization; Vertical trade; Regionalisation;Other versions of this item:
- Guillaume Daudin & Christine Rifflart & Danielle Schweisguth, 2011. "Who produces for whom in the world economy?," Canadian Journal of Economics, Canadian Economics Association, vol. 44(4), pages 1403-1437, November.
- F15 - International Economics - - Trade - - - Economic Integration
- F19 - International Economics - - Trade - - - Other
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-09-26 (All new papers)
- NEP-INT-2009-09-26 (International Trade)
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Escaith, Hubert & Lindenberg, Nannette & Miroudot, Sébastien, 2010. "International Supply Chains and Trade Elasticity in Times of Global Crisis," MPRA Paper 20478, University Library of Munich, Germany.
- Haruka Yane, 2013. "Prospects for Trade in Intermediates and Trade in Services: What Does the Gravity Model of Bilateral Trade Tell Us?," OSIPP Discussion Paper 13E002, Osaka School of International Public Policy, Osaka University.
- Robert Stehrer, 2012. "Trade in Value Added and the Valued Added in Trade," wiiw Working Papers 81, The Vienna Institute for International Economic Studies, wiiw.
- Gawande, Kishore & Hoekman, Bernard & Cui, Yue, 2011. "Determinants of trade policy responses to the 2008 financial crisis," Policy Research Working Paper Series 5862, The World Bank.
- 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.
- Robert Koopman & William Powers & Zhi Wang & Shang-Jin Wei, 2011. "Give Credit where Credit is Due: Tracing Value Added in Global Production Chains," Working Papers 312011, Hong Kong Institute for Monetary Research.
- Dierk Herzer & Peter Nunnenkamp, 2011. "FDI and Income Inequality: Evidence from Europe," Kiel Working Papers 1675, Kiel Institute for the World Economy.
- Datt, Mohini & Hoekman, Bernard & Malouche, Mariem, 2011. "Taking Stock of Trade Protectionism Since 2008," World Bank - Economic Premise, The World Bank, issue 72, pages 1-9, December.
- Martin Borowiecki & Bernhard Dachs & Doris Hanzl-Weiss & Steffen Kinkel & Johannes Pöschl & Magdolna Sass & Thomas Christian Schmall & Robert Stehrer & Andrea Szalavetz, 2012. "Global Value Chains and the EU Industry," wiiw Research Reports 383, The Vienna Institute for International Economic Studies, wiiw.
- Arjan Lejour & Hugo Rojas-Romagosa & Paul Veenendaal, 2012. "Identifying hubs and spokes in global supply chains using redirected trade in value added," CPB Discussion Paper 227, CPB Netherlands Bureau for Economic Policy Analysis.
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