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Are global value chains truly global? a new perspective based on the measure of trade in value-added

Author

Listed:
  • Meng, Bo
  • Xiao, Hao
  • Ye, Jiabai
  • Li, Shantong

Abstract

Are global value chains (GVCs) truly global or are they more of a regional p henomenon? Opinions concerning this issue are widely divergent in the literature. This p aper provides new perspectives on GVCs using network analysis based on the concept of trade in value-added. By using a multiregional input-output model, we first show that GVC activities can be consistently identified at the country, sector, and bilateral levels according to the number of times that factor contents cross national borders in global p roduction sharing. This allows us to group trade-related, value-added creation activities into three networks, including traditional trade, simple GVC trade, and complex GVC trade networks. Further, we use network analysis tools based on the Asian Development Bank’s Multiregional Input-Output Tables covering 62 economies and 35 sectors between 2000 and 2017 to investigate changes in the topology and structure of different types of G VC networks. Our results show that the characteristics of GVCs largely depend on the viewpoint of the participating country (as a supplier or demander), the type of trade, and the aggregate level of trade in the corresponding networks.

Suggested Citation

  • Meng, Bo & Xiao, Hao & Ye, Jiabai & Li, Shantong, 2019. "Are global value chains truly global? a new perspective based on the measure of trade in value-added," IDE Discussion Papers 736, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper736
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    Citations

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    Cited by:

    1. Bo Meng & Ming Ye & Shang‐Jin Wei, 2020. "Measuring Smile Curves in Global Value Chains," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 82(5), pages 988-1016, October.
    2. Lisandra Flach & Hannah-Maria Hildenbrand & Feodora Teti, 2021. "The Regional Comprehensive Economic Partnership Agreement and Its Expected Effects on World Trade," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 56(2), pages 92-98, March.
    3. Erdey, László & Gáll, József & Márkus, Ádám & Tőkés, Tibor, 2020. "Changes in the trade patterns of the UK in a global perspective," MPRA Paper 98110, University Library of Munich, Germany, revised 21 Jan 2020.
    4. repec:gdk:wpaper:56 is not listed on IDEAS
    5. Jiaze Sun & Huijuan Lee & Jun Yang, 2021. "The Impact of the COVID-19 Pandemic on the Global Value Chain of the Manufacturing Industry," Sustainability, MDPI, vol. 13(22), pages 1-20, November.
    6. Andreas Baur & Lisandra Flach & Feodora Teti, 2021. "30 Years of Mercosur – Integration Progress, Failures, and Future Trade Policy," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 74(04), pages 31-40, April.
    7. Holger Görg & Saskia Mösle & Thieß Petersen & Hartmut Egger & Kemal Kilic & Dalia Marin & Lisandra Flach & Rahel Aichele & Martin Braml & Ralph Wiechers & Thomas Steinwachs & Morris Hosseini & Michael, 2020. "Restart of Industry under the Influence of Covid-19: How Ready is the Global Supply Chain?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 73(05), pages 03-34, May.

    More about this item

    Keywords

    global value chains; network; trade in value-added; input-output model;
    All these keywords.

    JEL classification:

    • F6 - International Economics - - Economic Impacts of Globalization
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis

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