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

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

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.

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File URL: http://ir.ide.go.jp/dspace/bitstream/2344/1167/1/ARRIDE_Discussion_No.362_meng.pdf
File Function: First version, 2012
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Paper provided by Institute of Developing Economies, Japan External Trade Organization(JETRO) in its series IDE Discussion Papers with number 362.

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Date of creation: Jul 2012
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Publication status: Published in IDE Discussion Paper. No. 362. 2012.7
Handle: RePEc:jet:dpaper:dpaper362
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  1. 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.
  2. Xing, Yuqing & Detert, Neal, 2010. "How the iPhone Widens the United States Trade Deficit with the People's Republic of China," ADBI Working Papers 257, Asian Development Bank Institute.
  3. 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.
  4. Alan M. Rugman & Alain Verbeke, 2004. "A Perspective on Regional and Global Strategies of Multinational Enterprises," Working Papers 2004-19, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
  5. 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).
  6. 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.
  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. Escaith, Hubert, 2008. "Measuring trade in value added in the new industrial economy: statistical implications," MPRA Paper 14454, University Library of Munich, Germany.
  9. 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.
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