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Measuring Global Value Chains

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  • Robert C. Johnson

    () (Department of Economics, Dartmouth College, Hanover, New Hampshire 03755, USA)

Abstract

Recent decades have seen the emergence of global value chains (GVCs), in which production stages for individual goods are broken apart and scattered across countries. Stimulated by these developments, there has been rapid progress in data and methods for measuring GVC linkages. The macro approach to measuring GVCs connects national input?output tables across borders by using bilateral trade data to construct global input?output tables. These tables have been applied to measure trade in value added, the length of and location of producers in GVCs, and price linkages across countries. The micro approach uses firm-level data to document firms? input sourcing decisions, how import and export participation are linked, and how multinational firms organize their production networks. In this review, I evaluate progress in these two approaches, highlighting points of contact between them and areas that demand further work. I argue that further convergence between these approaches can strengthen both, yielding a more complete empirical portrait of GVCs.

Suggested Citation

  • Robert C. Johnson, 2018. "Measuring Global Value Chains," Annual Review of Economics, Annual Reviews, vol. 10(1), pages 207-236, August.
  • Handle: RePEc:anr:reveco:v:10:y:2018:p:207-236
    DOI: 10.1146/annurev-economics-080217-053600
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    References listed on IDEAS

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    Cited by:

    1. Rita Cappariello & Sebastian Franco-Bedoya & Vanessa Gunnella & Gianmarco Ottaviano, 2020. "Rising Protectionism and Global Value Chains: Quantifying the General Equilibrium Effects," CEP Discussion Papers dp1682, Centre for Economic Performance, LSE.
    2. Filippo Bontadini, 2019. "Trade Specialisation and Performance in Global Value Chains," SPRU Working Paper Series 2019-10, SPRU - Science Policy Research Unit, University of Sussex Business School.
    3. Gaulier, Guillaume & Sztulman, Aude & Ünal, Deniz, 2020. "Are global value chains receding? The jury is still out. Key findings from the analysis of deflated world trade in parts and components," International Economics, Elsevier, vol. 161(C), pages 219-236.
    4. Filippo Bontadini & Rinaldo Evangelista & Valentina Meliciani & Maria Savona, 2019. "Integration in Global Value Chains and Employment in Europe," SPRU Working Paper Series 2019-16, SPRU - Science Policy Research Unit, University of Sussex Business School.
    5. Matthew Grant, 2020. "Why Special Economic Zones? Using Trade Policy to Discriminate across Importers," American Economic Review, American Economic Association, vol. 110(5), pages 1540-1571, May.
    6. Borin, Alessandro & Mancini, Michele, 2017. "Follow the Value Added: Tracking Bilateral Relations in Global Value Chains," MPRA Paper 82692, University Library of Munich, Germany.

    More about this item

    Keywords

    foreign sourcing; input–output table; offshoring; value added; value chains;

    JEL classification:

    • F1 - International Economics - - Trade
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • F6 - International Economics - - Economic Impacts of Globalization

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