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Implications of measuring value added in exports with a regional input-output table. A case of study in South America

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  • Banacloche, Santacruz
  • Cadarso, María Ángeles
  • Monsalve, Fabio

Abstract

Global value chains (GVC) describe the functioning of international trade today. A widely used way to measure GVC is the input-output analysis. However, many developing countries are not covered in the main multi-regional input-output (MRIO) databases, hindering the measurement of GVC in regions like South America. The purpose of this paper is to analyse the role of South America in GVC using a novel regional input-output table (RIOT). To this end, a novel adaptation of Koopman, Wang and Wei gross exports decomposition scheme, suitable for any RIOT, is created. The implications of using a RIOT are assessed. Besides, the results are complemented with those obtained using a MRIO table. It is confirmed the low insertion of South America in GVC and its upstream position as a provider of intermediate goods and services. Imported content in South American exports comes mostly from outside the region and only Uruguay is vertically integrated.

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  • Banacloche, Santacruz & Cadarso, María Ángeles & Monsalve, Fabio, 2020. "Implications of measuring value added in exports with a regional input-output table. A case of study in South America," Structural Change and Economic Dynamics, Elsevier, vol. 52(C), pages 130-140.
    • Handle: RePEc:eee:streco:v:52:y:2020:i:c:p:130-140
    DOI: 10.1016/j.strueco.2019.08.003
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    1. Villani, Davide, 2021. "Revisiting the external financial dependence index in light of the rise of corporate net lending: What do we really measure?," Structural Change and Economic Dynamics, Elsevier, vol. 58(C), pages 361-376.
    2. Fabio Monsalve & Mateo Ortiz & María-Ángeles Cadarso & Enrique Gilles & Jorge Zafrilla & Luis-Antonio López, 2020. "Nesting a city input–output table in a multiregional framework: a case example with the city of Bogota," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-24, December.
    3. Álvaro Lalanne, 2021. "Measuring value circulation in regional chains: assessing two alternative methods in South America," Documentos de Trabajo (working papers) 0621, Department of Economics - dECON.
    4. Daniel Garraín & Santacruz Banacloche & Paloma Ferreira-Aparicio & Antonio Martínez-Chaparro & Yolanda Lechón, 2021. "Sustainability Indicators for the Manufacturing and Use of a Fuel Cell Prototype and Hydrogen Storage for Portable Uses," Energies, MDPI, vol. 14(20), pages 1-15, October.
    5. Ortiz, Mateo & Cadarso, María-Ángeles & López, Luis-Antonio & Jiang, Xuemei, 2022. "The trade-off between the economic and environmental footprints of multinationals’ foreign affiliates," Structural Change and Economic Dynamics, Elsevier, vol. 62(C), pages 85-97.
    6. Brondino, Gabriel & Lucero, Joaquín & Roitbarg, Hernán, 2023. "Productive specialization and integration in South America: A global input–output analysis," Structural Change and Economic Dynamics, Elsevier, vol. 67(C), pages 89-97.

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    More about this item

    Keywords

    Input-output tables; Global value chains; Vertical specialization; International trade;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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