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Measures of Participation in Global Value Chains and Global Business Cycles

Author

Listed:
  • Zhi Wang
  • Shang-Jin Wei
  • Xinding Yu
  • Kunfu Zhu

Abstract

This paper makes two methodological contributions. First, it proposes a framework to decompose total production activities at the country, sector, or country-sector level, to different types, depending on whether they are for pure domestic demand, traditional international trade, simple GVC activities, and complex GVC activities. Second, it proposes a pair of GVC participation indices that improves upon the measures in the existing literature. We apply this decomposition framework to a Global Input-Output Database (WIOD) that cover 44 countries and 56 industries from 2000 to2014 to uncover evolving compositions of different production activities. We also show that complex GVC activities co-move with global GDP growth more strongly than other types of production activities.

Suggested Citation

  • Zhi Wang & Shang-Jin Wei & Xinding Yu & Kunfu Zhu, 2017. "Measures of Participation in Global Value Chains and Global Business Cycles," NBER Working Papers 23222, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:23222
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    Cited by:

    1. repec:eee:phsmap:v:502:y:2018:i:c:p:148-163 is not listed on IDEAS
    2. Pol Antràs & Alonso de Gortari, 2016. "On the Geography of Global Value Chains," Working Paper 443991, Harvard University OpenScholar.
    3. Swati Dhingra & Rebecca Freeman & Eleonora Mavroeidi, 2018. "Beyond Tariff Reductions: What Extra Boost From Trade Agreement Provisions?," CEP Discussion Papers dp1532, Centre for Economic Performance, LSE.
    4. Antr�s, Pol & Chor, Davin, 2017. "On the Measurement of Upstreamness and Downstreamness in Global Value Chains," CEPR Discussion Papers 12549, C.E.P.R. Discussion Papers.
    5. Roman Stöllinger, 2017. "Global Value Chains and Structural Upgrading," wiiw Working Papers 138, The Vienna Institute for International Economic Studies, wiiw.

    More about this item

    JEL classification:

    • F10 - International Economics - - Trade - - - General

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