IDEAS home Printed from https://ideas.repec.org/p/ngi/dpaper/19-01.html
   My bibliography  Save this paper

Global Value Chains and the Missing Exports of the United States

Author

Listed:
  • Yuqing Xing

    () (National Graduate Institute for Policy Studies, Tokyo, Japan)

Abstract

Many American multinational corporations (MNCs) have turned into factory-less. They outsource the production of their products to foreign companies and derive the largest share of their revenue from the intellectual property of core technologies and brand names. When factory-less American MNCs sell their products assembled by foreign contract manufacturers in overseas markets, they actually gexport h the value added attributed to their intellectual property embedded in those physical goods. However, conventional trade statistics are compiled based on the value of goods crossing national borders, as declared to customs. The value added of the intellectual property is generally not recorded as part of US exports. We use Apple, a typical factory-less American company that employs exclusively foreign contact manufacturers to assembly its products, as a case to illustrate why and how conventional trade statistics underestimate actual US exports in the age of global value chains. According to our analysis of this case, if the value added of Apple intellectual property sold to foreign consumers was counted as part of US exports, total US exports in 2015 would increase by 3.4%, and its trade deficit would decrease by 7.0%. In terms of bilateral trade, the value added under examination here would raise the US exports to China and Japan by 16.6% and 8.6% respectively, and lower its trade deficit with the two countries by 5.2% and 7.8% accordingly.

Suggested Citation

  • Yuqing Xing, 2019. "Global Value Chains and the Missing Exports of the United States," GRIPS Discussion Papers 19-01, National Graduate Institute for Policy Studies.
  • Handle: RePEc:ngi:dpaper:19-01
    as

    Download full text from publisher

    File URL: https://grips.repo.nii.ac.jp/?action=repository_action_common_download&item_id=1675&item_no=1&attribute_id=20&file_no=1
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Robert Koopman & Zhi Wang & Shang-Jin Wei, 2014. "Tracing Value-Added and Double Counting in Gross Exports," American Economic Review, American Economic Association, vol. 104(2), pages 459-494, February.
    2. repec:fip:fedgsq:y:2005:i:mar10 is not listed on IDEAS
    3. Ben S. Bernanke, 2005. "The global saving glut and the U.S. current account deficit," Speech 77, Board of Governors of the Federal Reserve System (U.S.).
    Full references (including those not matched with items on IDEAS)

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ngi:dpaper:19-01. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://edirc.repec.org/data/gripsjp.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.