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Upstreamness in the Global Value Chain: Manufacturing and Services

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  • Kenji Suganuma

    (Economist, Institute for Monetary and Economic Studies, Bank of Japan (E-mail: kenji.suganuma@boj.or.jp))

Abstract

This paper investigates "upstreamness," which measures the distance of an industry from the final use in terms of the number of production stages, using the WIOD global input-output tables, which cover 40 major countries. We find that global upstreamness increased in the mid-2000s. This trend is mainly due to developments in the manufacturing sector, but the service sector also contributed to the increase. In manufacturing, upstreamness has increased mainly in East Asian economies including Japan, which is consistent with the recent deepening of global value chains in this area. In services, the growing role of business services contributed to the deepening of value chains, such as outsourcing via leasing and staff agencies, and linkages to new businesses through mobile telecommunications. In further research, the concept of upstreamness can be applied to the analysis of industries' international competitiveness and of the influence of demand shocks across countries.

Suggested Citation

  • Kenji Suganuma, 2016. "Upstreamness in the Global Value Chain: Manufacturing and Services," IMES Discussion Paper Series 16-E-02, Institute for Monetary and Economic Studies, Bank of Japan.
  • Handle: RePEc:ime:imedps:16-e-02
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    References listed on IDEAS

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    Cited by:

    1. Kozo Kiyota & Keita Oikawa & Katsuhiro Yoshioka, 2017. "The Global Value Chain and the Competitiveness of Asian Countries," Asian Economic Papers, MIT Press, vol. 16(3), pages 257-281, Fall.

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    More about this item

    Keywords

    Upstreamness; Global value chain; Production fragmentation; I-O tables;
    All these keywords.

    JEL classification:

    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F60 - International Economics - - Economic Impacts of Globalization - - - General
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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