The domestic content of imports and the foreign content of exports
When a country imports goods that have been assembled abroad, some amount of the labor and capital services embodied in those goods may originally be from the country that is now importing them. Similarly, some of the value added of a country's exports may be foreign in origin. For the median country in my sample of 14, I calculate that 21.5% of imported labor services are domestic labor, 17.7% of imported capital services are domestic capital, 12.3% of exported labor services are foreign labor, and 23.3% of exported capital services are foreign capital.
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