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Identifying hubs and spokes in global supply chains using redirected trade in value added

Author

Listed:
  • Arjan Lejour

    () (CPB Netherlands Bureau for Economic Policy Analysis)

  • Hugo Rojas-Romagosa

    () (CPB Netherlands Bureau for Economic Policy Analysis)

  • Paul Veenendaal

    (CPB Netherlands Bureau for Economic Policy Analysis)

Abstract

The increasing importance of global supply chains has prompted the use of analytical tools based on trade in value added – instead of traditional measures in gross value. We extend this analytical framework to create indicators that identify hubs and spokes in international supply chains. Using these indicators and the GTAP databases for 2001, 2004 and 2007 we identify the importance of redirected value added trade and the hub and spoke relationships at the aggregate level and for specific highly integrated industries. Published in Economic Systems Research 29, issue 1, pages. 66-81 .

Suggested Citation

  • Arjan Lejour & Hugo Rojas-Romagosa & Paul Veenendaal, 2012. "Identifying hubs and spokes in global supply chains using redirected trade in value added," CPB Discussion Paper 227, CPB Netherlands Bureau for Economic Policy Analysis.
  • Handle: RePEc:cpb:discus:227
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    References listed on IDEAS

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    1. Mayer, Thierry & Zignago, Soledad, 2006. "Notes on CEPII’s distances measures," MPRA Paper 26469, University Library of Munich, Germany.
    2. Guillaume Daudin & Christine Rifflart & Danielle Schweisguth, 2011. "Who produces for whom in the world economy?," Canadian Journal of Economics, Canadian Economics Association, vol. 44(4), pages 1403-1437, November.
    3. Hummels, David & Ishii, Jun & Yi, Kei-Mu, 2001. "The nature and growth of vertical specialization in world trade," Journal of International Economics, Elsevier, vol. 54(1), pages 75-96, June.
    4. Robert Koopman & William Powers & Zhi Wang & Shang-Jin Wei, 2010. "Give Credit Where Credit Is Due: Tracing Value Added in Global Production Chains," NBER Working Papers 16426, 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. Robert C. Johnson & Guillermo Noguera, 2012. "Proximity and Production Fragmentation," American Economic Review, American Economic Association, vol. 102(3), pages 407-411, May.
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    Cited by:

    1. Bouët, Antoine & Cosnard, Lionel & Laborde Debucquet, David, 2017. "Measuring trade integration in Africa," IFPRI discussion papers 1667, International Food Policy Research Institute (IFPRI).

    More about this item

    JEL classification:

    • F1 - International Economics - - Trade
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis

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