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Are global value chains receding? The jury is still out. Key findings from the analysis of deflated world trade in parts and components

Author

Listed:
  • Guillaume Gaulier
  • Aude Sztulman
  • Deniz Ünal

Abstract

The weakening of global value chain dynamics is considered as one of the causes of the slowdown in world trade since the 2008 crisis. To better understand the evolution of GVCs at the world level, we use very detailed trade data for 2000 to 2017, which distinguishes different production stages along the GVC. In particular, among intermediate goods, we focus on Parts and Components (P&C) rather than semi-finished products since the manufacture of P&C corresponds to activities more embedded in GVCs. We control for price effects using an original production stages deflator based on detailed bilateral trade unit-values, and take into account the evolution of the global business cycle. We show that the development of international value chains, measured as the share of trade in P&C in manufacturing world trade in volume, continued after the crisis. Moreover, such dynamics are not the result of sectoral composition effects.

Suggested Citation

  • Guillaume Gaulier & Aude Sztulman & Deniz Ünal, 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, CEPII research center, issue 161, pages 219-236.
    • Handle: RePEc:cii:cepiie:2020-q1-161-5
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    Cited by:

    1. Raphaël Chiappini & Cyrielle Gaglio, 2024. "Digital intensity, trade costs and exports' quality upgrading," The World Economy, Wiley Blackwell, vol. 47(2), pages 709-747, February.
    2. Joyez, Charlie, 2026. "Connectivity and contagion: How industry networks shape the transmission of shocks in global value chains," International Economics, Elsevier, vol. 185(C).
    3. Yi Wang & Yingming Zhu & Maojun Yu, 2023. "Identification of the most suitable areas for the development of headquarters economy in China: a theoretical framework and empirical case study," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(10), pages 11487-11515, October.
    4. Campbell, Jason, 2024. "The link between import sources and export success: Evidence from China," International Economics, Elsevier, vol. 178(C).
    5. Pierre Cotterlaz & Guillaume Gaulier & Aude Sztulmac & Deniz Unal, 2024. "Pioneering a New Classification: a Comprehensive Study of Healthcare Products in Global Trade," Working papers 963, Banque de France.
    6. Joshua Holzer, 2020. "The effect of copartisan justice ministers on human rights in presidential democracies," PLOS ONE, Public Library of Science, vol. 15(9), pages 1-17, September.
    7. Angella Faith Montfaucon & Natnael Simachew Nigatu & Socrates Kraido Majune, 2023. "An analysis of value chain trade in Africa," The World Economy, Wiley Blackwell, vol. 46(11), pages 3208-3230, November.
    8. Cotterlaz, Pierre & Gaulier, Guillaume & Sztulman, Aude & Ünal, Deniz, 2024. "Broadening the definition of healthcare products in global trade: Insights from a new classification," International Economics, Elsevier, vol. 180(C).
    9. Bhanu Pratap Singh, 2021. "Institutional quality and poverty reduction in BRICS," Poverty & Public Policy, John Wiley & Sons, vol. 13(4), pages 335-350, December.

    More about this item

    Keywords

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    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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