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Measuring the Upstreamness of Production and Trade Flows

  • Pol Antras
  • Davin Chor
  • Thibault Fally
  • Russell Hillberry

We propose two distinct approaches to the measurement of industry upstreamness (or average distance from final use) and show that they yield an equivalent measure. Furthermore, we provide two additional interpretations of this measure, one of them related to the concept of forward linkages. We construct this measure for 426 industries using the 2002 US input-output Tables. We also construct our measure using data from selected countries in the OECD STAN database. Finally, we present an application of our measure that explores the determinants of the average upstreamness of exports at the country level using trade flows for 2002.

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File URL: http://www.aeaweb.org/articles.php?doi=10.1257/aer.102.3.412
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Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 102 (2012)
Issue (Month): 3 (May)
Pages: 412-16

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Handle: RePEc:aea:aecrev:v:102:y:2012:i:3:p:412-16
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  1. Karen J. Horowitz & Mark A. Planting, 2006. "Concepts and Methods of the U.S. Input-Output Accounts," BEA Papers 0066, Bureau of Economic Analysis.
  2. Robert J. Barro & Jong-Wha Lee, 2010. "A New Data Set of Educational Attainment in the World, 1950-2010," NBER Working Papers 15902, National Bureau of Economic Research, Inc.
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