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Give Credit where Credit is Due: Tracing Value Added in Global Production Chains

Author

Listed:
  • Robert Koopman

    (United States International Trade Commission)

  • William Powers

    (United States International Trade Commission)

  • Zhi Wang

    (United States International Trade Commission)

  • Shang-Jin Wei

    (Columbia University and Centre for Economic Policy Research and National Bureau of Economic Research and Hong Kong Institute for Monetary Research)

Abstract

This paper presents a new conceptual framework to measure sources of value-added trade by country in global production networks. With a parsimonious decomposition of gross exports that eliminates "double counting", it integrates all previous measures of vertical specialization and value-added trade in the literature. We apply the framework to the most recent appropriate data (2004). Among emerging markets, East Asian countries are the most globally integrated. Among major developed economies, the US is the most integrated in some aspects, and Japan in others. These regional differences also affect exporters¡¦ trade costs.

Suggested Citation

  • Robert Koopman & William Powers & Zhi Wang & Shang-Jin Wei, 2011. "Give Credit where Credit is Due: Tracing Value Added in Global Production Chains," Working Papers 312011, Hong Kong Institute for Monetary Research.
    • Handle: RePEc:hkm:wpaper:312011
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    References listed on IDEAS

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    JEL classification:

    • F1 - International Economics - - Trade
    • F2 - International Economics - - International Factor Movements and International Business

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