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Networks of Value-added Trade

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  • João Amador
  • Sónia Cabral

Abstract

Global Value Chains (GVCs) became the paradigm for the production of most goods and services around the world. Therefore, linkages among countries can no longer be adequately assessed through standard bilateral gross trade flows and new methods of analysis are needed. In this paper, we apply visualisation tools and measures of network analysis on value-added trade flows in order to understand the nature and dynamics of GVCs. The paper uses data on the bilateral foreign value added in exports from the World Input-Output Database (WIOD) for the period 1995-2011 and, in each period, the GVC is represented as a directed network of nodes (countries) and edges (value added flows). The analysis is extended beyond total trade flows with a view to discussing the distinct roles of goods and services in GVCs. Moreover, the differences between Germany, the US, China and Russia as major suppliers of value added in GVCs are also examined.
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Suggested Citation

  • João Amador & Sónia Cabral, 2017. "Networks of Value-added Trade," The World Economy, Wiley Blackwell, vol. 40(7), pages 1291-1313, July.
  • Handle: RePEc:bla:worlde:v:40:y:2017:i:7:p:1291-1313
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    Cited by:

    1. Picciolo, Francesco & Papandreou, Andreas & Hubacek, Klaus & Ruzzenenti, Franco, 2017. "How crude oil prices shape the global division of labor," Applied Energy, Elsevier, vol. 189(C), pages 753-761.
    2. A. Baronchelli & T.E. Uberti, 2018. "Exports and FDI: comparing networks in the new millennium," Working Paper CRENoS 201813, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    3. repec:kap:openec:v:29:y:2018:i:5:d:10.1007_s11079-018-9499-7 is not listed on IDEAS
    4. João Amador & João Falcão Silva, 2017. "Banks international asset portfolios: optimality, linkages and resilience," IFC Bulletins chapters,in: Bank for International Settlements (ed.), Statistical implications of the new financial landscape, volume 43 Bank for International Settlements.
    5. Lionel Fontagné & Gianluca Santoni, 2018. "GVCs and the Endogenous Geography of RTAs," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01773479, HAL.
    6. repec:eee:phsmap:v:502:y:2018:i:c:p:164-184 is not listed on IDEAS
    7. repec:eee:ecolec:v:150:y:2018:i:c:p:177-183 is not listed on IDEAS
    8. repec:bla:chinae:v:26:y:2018:i:4:p:106-132 is not listed on IDEAS
    9. Hakan Nordström & Harry Flam, 2018. "Production Integration in the European Union," CESifo Working Paper Series 6944, CESifo Group Munich.
    10. repec:oup:erevae:v:44:y:2017:i:4:p:592-633. is not listed on IDEAS
    11. Gabriele di Filippo, 2018. "What place does Luxembourg hold in global value chains?," BCL working papers 120, Central Bank of Luxembourg.
    12. repec:eee:ecmode:v:72:y:2018:i:c:p:379-390 is not listed on IDEAS
    13. Lionel Fontagné & Gianluca Santoni, 2018. "GVCs and the Endogenous Geography of RTAs
      [Mondialisation des chaînes de valeur et la géographie endogène des accords commerciaux régionaux]
      ," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01763563, HAL.
    14. João Amador & Sónia Cabral & Rossana Mastrandrea & Franco Ruzzenenti, 2018. "Who’s Who in Global Value Chains? A Weighted Network Approach," Open Economies Review, Springer, vol. 29(5), pages 1039-1059, November.
    15. Laura Dell'Agostino, 2017. "Italy’S Participation In International Supply And Production Networks Using Value Added Trade Data," Departmental Working Papers of Economics - University 'Roma Tre' 0228, Department of Economics - University Roma Tre.
    16. repec:eee:phsmap:v:502:y:2018:i:c:p:148-163 is not listed on IDEAS
    17. repec:sls:ipmsls:v:34:y:2018:4 is not listed on IDEAS
    18. repec:bla:econpa:v:37:y:2018:i:3:p:198-219 is not listed on IDEAS

    More about this item

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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