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Measuring global value chains and regional economic integration : an international input-output approach

Author

Listed:
  • Meng, Bo
  • Fang, Yong
  • Yamano, Norihiko

Abstract

Firms that are expanding their cross-border activities, such as vertical specialization trade, outsourcing, and fragmentation productions, have brought dramatic changes to the global economy during the last two decades. In an attempt to understand the evolution of the interaction among countries or country groups, many trade-statistics-based indicators have been developed. However, most of these statistics focus on showing the direct trade-specific-relationship among countries, rather than considering the roles that intercountry and interindustrial production networks play in a global economy. This paper uses the concepts of trade in value added as measured by the input–output tables of OECD and IDE-JETRO to provide alternative indicators that show the evolution of regional economic integration and global value chains for more than 50 economies. In addition, this paper provides thoughts on how to evaluate comparative advantages on the basis of value added using an international input–output model.

Suggested Citation

  • Meng, Bo & Fang, Yong & Yamano, Norihiko, 2012. "Measuring global value chains and regional economic integration : an international input-output approach," IDE Discussion Papers 362, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  • Handle: RePEc:jet:dpaper:dpaper362
    as

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    File URL: https://ir.ide.go.jp/?action=repository_action_common_download&item_id=37812&item_no=1&attribute_id=22&file_no=1
    File Function: First version, 2012
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    References listed on IDEAS

    as
    1. Escaith, Hubert, 2008. "Measuring trade in value added in the new industrial economy: statistical implications," MPRA Paper 14454, University Library of Munich, Germany.
    2. Baldwin, Richard, 2011. "21st century regionalism: Filling the gap between 21st century trade and 20th century trade rules," WTO Staff Working Papers ERSD-2011-08, World Trade Organization (WTO), Economic Research and Statistics Division.
    3. Kuroiwa, Ikuo, 2006. "Rules of Origin and Local Content in East Asia," IDE Discussion Papers 78, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    4. Gaaitzen De Vries & Neil Foster-McGregor & Robert Stehrer, 2012. "Value Added and Factors in Trade: A Comprehensive Approach," wiiw Working Papers 80, The Vienna Institute for International Economic Studies, wiiw.
    5. Alan M Rugman & Alain Verbeke, 2004. "A perspective on regional and global strategies of multinational enterprises," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(1), pages 3-18, January.
    6. Meng, Bo & Yamano, Norihiko & Webb, Colin, 2011. "Application of factor decomposition techniques to vertical specialisation measurements," IDE Discussion Papers 276, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    7. Koen De Backer & Norihiko Yamano, 2012. "International Comparative Evidence on Global Value Chains," OECD Science, Technology and Industry Working Papers 2012/3, OECD Publishing.
    8. Yuqing Xing & Neal Detert, 2011. "How the iPhone Widens the United States Trade Deficit with the People's Republic of China:," Aussenwirtschaft, University of St. Gallen, School of Economics and Political Science, Swiss Institute for International Economics and Applied Economics Research, vol. 66(03), pages 339-350, September.
    9. Johnson, Robert C. & Noguera, Guillermo, 2012. "Accounting for intermediates: Production sharing and trade in value added," Journal of International Economics, Elsevier, vol. 86(2), pages 224-236.
    10. Robert Stehrer, 2012. "Trade in Value Added and the Valued Added in Trade," wiiw Working Papers 81, The Vienna Institute for International Economic Studies, wiiw.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. -, 2016. "The South American input-output table: Key assumptions and methodological considerations," Documentos de Proyectos 722, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    2. Inomata, Satoshi, 2013. "Trade in Value Added: An East Asian Perspective," ADBI Working Papers 451, Asian Development Bank Institute.
    3. Hubert Escaith, 2014. "Mapping global value chains and measuring trade in tasks," Chapters,in: Asia and Global Production Networks, chapter 9, pages 287-337 Edward Elgar Publishing.
    4. Kaveri Deb & William R. Hauk, 2017. "RCA indices, multinational production and the Ricardian trade model," International Economics and Economic Policy, Springer, vol. 14(1), pages 1-25, January.
    5. Meng, Bo & Xue, Jinjun & Feng, Kuishuang & Guan, Dabo & Fu, Xue, 2013. "China’s inter-regional spillover of carbon emissions and domestic supply chains," Energy Policy, Elsevier, vol. 61(C), pages 1305-1321.
    6. Bullón, David & Mena, Tayutic & Meng, Bo & Sánchez, Natalia & Vargas, Henry & Inomata, Satoshi, 2015. "Using the input-output approach to measure participation in GVCs : the case of Costa Rica," IDE Discussion Papers 529, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    7. Enrique Gilles, 2015. "Una medición del valor agregado generado por las exportaciones colombianas," DOCUMENTOS DE TRABAJO EAN 012975, UNIVERSIDAD EAN.
    8. Satoshi Inomata, 2014. "Trade in value added: concept, development, and an East Asian perspective," Chapters,in: A World Trade Organization for the 21st Century, chapter 3, pages 48-70 Edward Elgar Publishing.

    More about this item

    Keywords

    International trade; International economic integration; Industrial management; Trade in value added; Value chain; Vertical specialization; Comparative advantage;

    JEL classification:

    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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