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The Gravity Model, Global Value Chain and the Brazilian States

Author

Listed:
  • Joaquim Guilhoto

    (USP - Inst Fis, Sao Paulo)

  • Jean-Marc Siroën

    (LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique)

  • Aycil Yücer

    (LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique)

Abstract

The WTO and the OECD along with many other organizations, suggest trade in value-added is a "better" measuring system than gross value in order to better understand the impact of trade on employment, growth and production . When it comes to the "domestic" value chain and internalspecializations, internal trade statistics are rarely available. In this work we use a gravity model basedon the estimation of exports of the Brazilian states, considered as trade entities, both in traditionalterms of gross value and in terms of value-added. Our method is based on an Input-Output table for 2008. The results of the bilateral gravity model for the Brazilian states' exports show that the maindeterminants (GDP, distance etc.) are fairly similar when exports are estimated in gross or value-added terms.

Suggested Citation

  • Joaquim Guilhoto & Jean-Marc Siroën & Aycil Yücer, 2017. "The Gravity Model, Global Value Chain and the Brazilian States," Working Papers hal-01486978, HAL.
    • Handle: RePEc:hal:wpaper:hal-01486978
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    References listed on IDEAS

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    Cited by:

    1. repec:gdk:wpaper:40 is not listed on IDEAS
    2. Njike, Arnold, 2019. "Are African exports that weak ? A trade in value-added approach," MPRA Paper 97658, University Library of Munich, Germany.
    3. Françoise Okah Efogo, 2020. "Does trade in services improve African participation in global value chains?," African Development Review, African Development Bank, vol. 32(4), pages 758-772, December.
    4. Emmanouil Karakostas, 2022. "The Effects of Protectionism on the Exports of the Trade Partners: A Composite Index," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 15(1), pages 58-70, July.

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    More about this item

    Keywords

    Input-Output Analysis; Commerce international; Global supply-chain; Vertical Specialization; Spécialisation verticale; Brésil; chaîne globale de valeur; Intranational trade; Brazil; analyse Input-Output;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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