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Accounting for Firm Heterogeneity within U.S. Industries: Extended Supply-Use Tables and Trade in Value Added using Enterprise and Establishment Level Data

Author

Listed:
  • James J. Fetzer
  • Tina Highfill
  • Kassu W. Hossiso
  • Thomas F. Howells III
  • Erich H. Strassner
  • Jeffrey A. Young

    (Bureau of Economic Analysis)

Abstract

This paper presents experimental trade-in-value added statistics estimated from extended supply-use tables (SUTs) for the United States for 2005 and 2012 that account for firm heterogeneity. The tables used to estimate the TiVA statistics extend supply-use tables for the United States by disaggregating the components of supply and use by multinational and other firms. We also present preliminary output from a microdata linking project between the U.S. Bureau of Economic Analysis and the U.S. Census Bureau on the U.S. semiconductor and other electronic components manufacturing industry to show how different firm characteristics account for heterogeneity within industries in an extended SUT framework. The rise of global value chains has increased the importance of measuring trade on a value added basis and identifying trade by multinational enterprises when analyzing bilateral trade flows. Our experimental results show that imported content of exports as a share of exports varies notably by firm-type within most industries, and that the imported content of exports is concentrated in a few industries, the largest being petroleum manufacturing. Based on these experimental results, most content of exports by firms in goods producing industries is from U.S. multinational enterprises (MNEs) and most content of exports in services industries is from non-MNEs. However, domestic value added embodied in inputs from upstream foreign affiliates makes a significant contribution to the content of exports in several industries. We also find that several of the industries where value added content of exports by MNEs is concentrated are also industries in which intrafirm trade in goods is concentrated. Estimates based on our microdata linking project suggest that production patterns by ownership, firm size class, and export intensity each exhibit firm heterogeneity to some extent. The ownership criteria best accounts for heterogeneity in the value added share of production among the three criteria, while firm size class accounts for heterogeneity in the export share of production better than the ownership criteria. However, the three criteria are highly correlated and we make no attempt here to isolate the individual effects of each.

Suggested Citation

  • James J. Fetzer & Tina Highfill & Kassu W. Hossiso & Thomas F. Howells III & Erich H. Strassner & Jeffrey A. Young, 2018. "Accounting for Firm Heterogeneity within U.S. Industries: Extended Supply-Use Tables and Trade in Value Added using Enterprise and Establishment Level Data," BEA Working Papers 0158, Bureau of Economic Analysis.
    • Handle: RePEc:bea:wpaper:0158
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    References listed on IDEAS

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    1. James J. Fetzer & Erich H. Strassner, 2015. "Identifying Heterogeneity in the Production Components of Globally Engaged Business Enterprises in the United States," BEA Working Papers 0130, Bureau of Economic Analysis.
    2. James Fetzer & Erich Strassner, 2015. "Identifying Heterogeneity in the Production Components of Globally Engaged Business Enterprises in the United States," EcoMod2015 8741, EcoMod.
    3. Elhanan Helpman & Marc J. Melitz & Stephen R. Yeaple, 2004. "Export Versus FDI with Heterogeneous Firms," American Economic Review, American Economic Association, vol. 94(1), pages 300-316, March.
    4. Bernhard Michel & Caroline Hambÿe & Bart Hertveldt, 2018. "The Role of Exporters and Domestic Producers in GVCs: Evidence for Belgium based on Extended National Supply-and-Use Tables Integrated into a Global Multiregional Input-Output Table," NBER Working Papers 25155, National Bureau of Economic Research, Inc.
    5. Johnson, Robert C. & Noguera, Guillermo, 2012. "Accounting for intermediates: Production sharing and trade in value added," Journal of International Economics, Elsevier, vol. 86(2), pages 224-236.
    6. Bart Los & Marcel P. Timmer & Gaaitzen J. de Vries, 2016. "Tracing Value-Added and Double Counting in Gross Exports: Comment," American Economic Review, American Economic Association, vol. 106(7), pages 1958-1966, July.
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    Cited by:

    1. Caroline Hambye & Bart Hertveldt & Bernhard Klaus Michel, 2018. "Working Paper 11-18 - Value chain integration of export-oriented and domestic market manufacturing firms - An analysis based on a heterogeneous input-output table for Belgium," Working Papers 1811, Federal Planning Bureau, Belgium.
    2. Bernhard Michel & Caroline Hambÿe & Bart Hertveldt, 2020. "The Role of Exporters and Domestic Producers in GVCs: Evidence for Belgium Based on Extended National Supply and Use Tables Integrated into a Global Multiregional Input-Output Table," NBER Chapters, in: Challenges of Globalization in the Measurement of National Accounts, pages 347-387, National Bureau of Economic Research, Inc.
    3. Bernhard Michel & Caroline Hambÿe & Bart Hertveldt, 2018. "The Role of Exporters and Domestic Producers in GVCs: Evidence for Belgium based on Extended National Supply-and-Use Tables Integrated into a Global Multiregional Input-Output Table," NBER Working Papers 25155, National Bureau of Economic Research, Inc.

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    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General

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