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Global Value Chains and Trade Elasticities

Author

Listed:
  • Byron S. Gangnes

    (UHERO, University of Hawaii at Manoa)

  • Alyson C. Ma

    (University of San Diego)

  • Ari Van Assche

    (HEC Montr�al, Department of International Business)

Abstract

Previous studies have argued that global value chains (GVCs) have increased the sensitivity of trade to external business cycle shocks. This may occur either because GVC trade is concentrated in durable goods industries, which are known to have high income elasticities (a composition effect), or because, within industries, GVC trade has a higher income elasticity than regular trade (a supply chain effect). Using Chinese trade data across customs regimes and industries during the period 1995-2009, we find evidence for the former, but not the latter.

Suggested Citation

  • Byron S. Gangnes & Alyson C. Ma & Ari Van Assche, 2014. "Global Value Chains and Trade Elasticities," Working Papers 2014-2, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
    • Handle: RePEc:hae:wpaper:2014-2
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    References listed on IDEAS

    as
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    Cited by:

    1. Christoph Fischer & Oliver Hossfeld & Karin Radeck, 2018. "On the Suitability of Alternative Competitiveness Indicators for Explaining Real Exports of Advanced Economies," Open Economies Review, Springer, vol. 29(1), pages 119-139, February.
    2. David C. López-Valenzuela & Enrique Montes-Uribe & Héctor M. Zárate-Solano & Alvaro Carmona-Duarte, 2019. "Determinantes y evolución entre precios y cantidades de las exportaciones industriales de Colombia: un estudio a partir de un modelo de Panel-VAR," Borradores de Economia 1075, Banco de la Republica de Colombia.
    3. ABBAS, Shah & Nguyen, V.C. & YANFU, Zhu & Nguyen, Huu Tinh, 2020. "The Impact of China Exchange Rate Policy on its Trading Partners Evidence Based on the GVAR Model," OSF Preprints cwvqb, Center for Open Science.
    4. Gökmen, Nuri & Hu, Weihao & Hou, Peng & Chen, Zhe & Sera, Dezso & Spataru, Sergiu, 2016. "Investigation of wind speed cooling effect on PV panels in windy locations," Renewable Energy, Elsevier, vol. 90(C), pages 283-290.
    5. Ahmed, Sumair Faisal & Khalid, M. & Rashmi, W. & Chan, A. & Shahbaz, Kaveh, 2017. "Recent progress in solar thermal energy storage using nanomaterials," Renewable and Sustainable Energy Reviews, Elsevier, vol. 67(C), pages 450-460.
    6. Byron Gangnes & Ari Van Assche, 2016. "Global Value Chains and Changing Trade Elasticities," Working Papers 201617, University of Hawaii at Manoa, Department of Economics.
    7. Bouvet, Florence & Ma, Alyson C. & Van Assche, Ari, 2017. "Tariff and exchange rate pass-through for Chinese exports: A firm-level analysis across customs regimes," China Economic Review, Elsevier, vol. 46(C), pages 87-96.
    8. Oh, Yunjung & Park, Junhong & Lee, Jong Tae & Seo, Jigu & Park, Sungwook, 2016. "Development strategies to satisfy corporate average CO2 emission regulations of light duty vehicles (LDVs) in Korea," Energy Policy, Elsevier, vol. 98(C), pages 121-132.
    9. Jaime Martínez-Martín, 2016. "Breaking down world trade elasticities: a panel ECM approach," Working Papers 1614, Banco de España.
    10. Xing, Yupeng & Han, Peide & Wang, Shuai & Liang, Peng & Lou, Shishu & Zhang, Yuanbo & Hu, Shaoxu & Zhu, Huishi & Zhao, Chunhua & Mi, Yanhong, 2015. "A review of concentrator silicon solar cells," Renewable and Sustainable Energy Reviews, Elsevier, vol. 51(C), pages 1697-1708.
    11. Bhushan Praveen Jangam & Badri Narayan Rath, 2021. "Does global value chain participation enhance domestic value‐added in exports? Evidence from emerging market economies," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(2), pages 1681-1694, April.

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    More about this item

    Keywords

    global value chains; trade elasticities; supply chain effect; composition effect;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance

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