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Networks of value added trade

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  • Amador, João
  • Cabral, Sónia

Abstract

Global Value Chains (GVCs) became the paradigm for the production of most goods and services around the world. Hence, interconnections among countries can no longer be adequately assessed through standard bilateral gross trade flows and new methods of analysis are needed. In this paper, we compute measures of network analysis and apply visualisation tools to value added trade flows in order to understand the nature and dynamics of GVCs. The paper uses data on the bilateral foreign value added in exports for the period 1995-2011 and, in each year, GVCs are represented as directed networks of nodes (countries) and edges (value added flows). The analysis is extended beyond total trade flows to discuss the distinct roles of goods and services in GVCs. Moreover, the differences between Germany, the US, China and Russia as major suppliers of value added in GVCs are also examined. JEL Classification: F12, F14, C67

Suggested Citation

  • Amador, João & Cabral, Sónia, 2016. "Networks of value added trade," Working Paper Series 1931, European Central Bank.
  • Handle: RePEc:ecb:ecbwps:20161931
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    Cited by:

    1. A. Baronchelli & T.E. Uberti, 2018. "Exports and FDI: comparing networks in the new millennium," Working Paper CRENoS 201813, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    2. repec:kap:openec:v:29:y:2018:i:5:d:10.1007_s11079-018-9499-7 is not listed on IDEAS
    3. repec:bla:chinae:v:26:y:2018:i:4:p:106-132 is not listed on IDEAS
    4. repec:eee:phsmap:v:502:y:2018:i:c:p:148-163 is not listed on IDEAS
    5. Picciolo, Francesco & Papandreou, Andreas & Hubacek, Klaus & Ruzzenenti, Franco, 2017. "How crude oil prices shape the global division of labor," Applied Energy, Elsevier, vol. 189(C), pages 753-761.
    6. repec:eee:ecolec:v:150:y:2018:i:c:p:177-183 is not listed on IDEAS
    7. repec:oup:erevae:v:44:y:2017:i:4:p:592-633. is not listed on IDEAS
    8. Lionel Fontagné & Gianluca Santoni, 2018. "GVCs and the Endogenous Geography of RTAs
      [Mondialisation des chaînes de valeur et la géographie endogène des accords commerciaux régionaux]
      ," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01763563, HAL.
    9. João Amador & João Falcão Silva, 2017. "Banks international asset portfolios: optimality, linkages and resilience," IFC Bulletins chapters,in: Bank for International Settlements (ed.), Statistical implications of the new financial landscape, volume 43 Bank for International Settlements.
    10. Gabriele di Filippo, 2018. "What place does Luxembourg hold in global value chains?," BCL working papers 120, Central Bank of Luxembourg.
    11. repec:eee:ecmode:v:72:y:2018:i:c:p:379-390 is not listed on IDEAS
    12. Laura Dell'Agostino, 2017. "Italy’S Participation In International Supply And Production Networks Using Value Added Trade Data," Departmental Working Papers of Economics - University 'Roma Tre' 0228, Department of Economics - University Roma Tre.
    13. repec:eee:phsmap:v:502:y:2018:i:c:p:164-184 is not listed on IDEAS
    14. repec:bla:econpa:v:37:y:2018:i:3:p:198-219 is not listed on IDEAS
    15. repec:sls:ipmsls:v:34:y:2018:4 is not listed on IDEAS
    16. Hakan Nordström & Harry Flam, 2018. "Production Integration in the European Union," CESifo Working Paper Series 6944, CESifo Group Munich.
    17. João Amador & Sónia Cabral & Rossana Mastrandrea & Franco Ruzzenenti, 2018. "Who’s Who in Global Value Chains? A Weighted Network Approach," Open Economies Review, Springer, vol. 29(5), pages 1039-1059, November.

    More about this item

    Keywords

    global value chains; input-output tables; international trade; network analysis;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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