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Global Value Chains and Trade Elasticities

Author

Listed:
  • Byron S. Gangnes

    () (Department of Economics, University of Hawaii at Manoa)

  • Alyson C. Ma

    (University of San Diego)

  • Ari Van Assche

    () (HEC Montréal, 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 201401, University of Hawaii at Manoa, Department of Economics.
  • Handle: RePEc:hai:wpaper:201401
    as

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    File URL: http://www.economics.hawaii.edu/research/workingpapers/WP_14-1.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. repec:kap:openec:v:29:y:2018:i:1:d:10.1007_s11079-017-9457-9 is not listed on IDEAS
    2. repec:eee:chieco:v:46:y:2017:i:c:p:87-96 is not listed on IDEAS
    3. Jaime Martínez-Martín, 2016. "Breaking down world trade elasticities: a panel ECM approach," Working Papers 1614, Banco de España;Working Papers Homepage.
    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. 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.
    7. Byron Gangnes & Ari Van Assche, 2016. "Global Value Chains and Changing Trade Elasticities," Working Papers 2016-11, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
    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. 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.

    More about this item

    Keywords

    global value chains; trade elasticities; supply chain effect; composition effect;

    JEL classification:

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

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