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Measures of Participation in Global Value Chains and Global Business Cycles

Listed author(s):
  • Zhi Wang
  • Shang-Jin Wei
  • Xinding Yu
  • Kunfu Zhu

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.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 23222.

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Date of creation: Mar 2017
Handle: RePEc:nbr:nberwo:23222
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