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Measuring value circulation in regional chains: assessing two alternative methods in South America

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  • Álvaro Lalanne

    (Consultant at ECLAC Office in Uruguay)

Abstract

Since Hummels, Ishii and Ye (2001) seminal work there have been lots of proposals for measuring participation in global value chains with input-output tables. Conjointly to the development of measures, several projects created Inter-Country Input-output tables. To the extent that integrating data of different origins requires strong assumptions and confidence in sources, some projects keep more detailed inter country input-output tables at a regional level. In this paper I adapt two of the most complete methods conceived for global Input-output tables to the case of regional tables, and I use them to analyze the intraregional value chain trade of South America. Besides characterizing the trade in this region, this paper identifies and asses the differences between adaptations of Borin and Mancini (2019) source-based decomposition of gross exports and the Wang, Wei and Zhu (2018) method.

Suggested Citation

  • Álvaro Lalanne, 2021. "Measuring value circulation in regional chains: assessing two alternative methods in South America," Documentos de Trabajo (working papers) 0621, Department of Economics - dECON.
    • Handle: RePEc:ude:wpaper:0621
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    File URL: https://hdl.handle.net/20.500.12008/28250
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    References listed on IDEAS

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    1. Guillaume Daudin & Christine Rifflart & Danielle Schweisguth, 2011. "Who produces for whom in the world economy?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 44(4), pages 1403-1437, November.
    2. Alessandro Borin & Michele Mancini, 2015. "Follow the value added: bilateral gross export accounting," Temi di discussione (Economic working papers) 1026, Bank of Italy, Economic Research and International Relations Area.
    3. Marcel P. Timmer & Erik Dietzenbacher & Bart Los & Robert Stehrer & Gaaitzen J. Vries, 2015. "An Illustrated User Guide to the World Input–Output Database: the Case of Global Automotive Production," Review of International Economics, Wiley Blackwell, vol. 23(3), pages 575-605, August.
    4. Arne J. Nagengast & Robert Stehrer, 2016. "Accounting for the Differences Between Gross and Value Added Trade Balances," The World Economy, Wiley Blackwell, vol. 39(9), pages 1276-1306, September.
    5. Banacloche, Santacruz & Cadarso, María Ángeles & Monsalve, Fabio, 2020. "Implications of measuring value added in exports with a regional input-output table. A case of study in South America," Structural Change and Economic Dynamics, Elsevier, vol. 52(C), pages 130-140.
    6. Bart Los & Marcel P. Timmer, 2020. "Measuring Bilateral Exports of Value Added: A Unified Framework," NBER Chapters, in: Challenges of Globalization in the Measurement of National Accounts, pages 389-421, National Bureau of Economic Research, Inc.
    7. Lorenzo Caliendo & Fernando Parro, 2015. "Estimates of the Trade and Welfare Effects of NAFTA," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 82(1), pages 1-44.
    8. Miroudot, Miroudot & Ye, Ming, 2018. "A simple and accurate method to calculate domestic and foreign value-added in gross exports," MPRA Paper 89907, University Library of Munich, Germany.
    9. Zhi Wang & Shang-Jin Wei & Xinding Yu & Kunfu Zhu, 2017. "Characterizing Global Value Chains: Production Length and Upstreamness," NBER Working Papers 23261, National Bureau of Economic Research, Inc.
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    11. Manfred Lenzen & Daniel Moran & Keiichiro Kanemoto & Arne Geschke, 2013. "Building Eora: A Global Multi-Region Input-Output Database At High Country And Sector Resolution," Economic Systems Research, Taylor & Francis Journals, vol. 25(1), pages 20-49, March.
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    More about this item

    Keywords

    trade in value-added; global value chains; regional integration; inter-country input-output tables;
    All these keywords.

    JEL classification:

    • E16 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Social Accounting Matrix
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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