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Indicators on global value chains: A guide for empirical work

Author

Listed:
  • Nadim Ahmad
  • Timon Bohn
  • Nanno Mulder
  • Marcel Vaillant
  • Dayna Zaclicever

Abstract

Traditionally, the main source of data used to measure countries’ participation in international production networks or global value chains (GVCs) has been conventional international trade statistics. However, international fragmentation of production has weakened the analytic interpretability of these data as intermediate goods but also services cross borders many times on the way to their final destination. This is often referred to as the double (or multiple)-counting problem of international trade Statistics. This, in turn, has led to the development of a new branch of trade statistics, referred to as Trade in Value-Added (TiVA) providing new insights on GVCs, and corresponding databases, notably the OECD-WTO TiVA database, which provide a measure of international interdependencies through the construction of global input-output tables that show how producers in one country provide goods and/or services to producers and consumers in others. But with the field still relatively new, many users are struggling to fully understand how these new indicators should be used and indeed how they have been constructed. This document is designed to address those difficulties, providing, where appropriate guidance on “dos” and “don’ts”. It also reviews many other typical GVC indicators derived outside of input-output frameworks; recognising that gross measures of trade, and indicators derived from them, remain important and relevant for policy making.

Suggested Citation

  • Nadim Ahmad & Timon Bohn & Nanno Mulder & Marcel Vaillant & Dayna Zaclicever, 2017. "Indicators on global value chains: A guide for empirical work," OECD Statistics Working Papers 2017/8, OECD Publishing.
  • Handle: RePEc:oec:stdaaa:2017/8-en
    DOI: 10.1787/8502992f-en
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    1. Shriram S. Rangarajan & Suvetha Poyyamani Sunddararaj & AVV Sudhakar & Chandan Kumar Shiva & Umashankar Subramaniam & E. Randolph Collins & Tomonobu Senjyu, 2022. "Lithium-Ion Batteries—The Crux of Electric Vehicles with Opportunities and Challenges," Clean Technol., MDPI, vol. 4(4), pages 1-23, September.
    2. Banacloche, Santacruz & Cadarso, María Ángeles & Monsalve, Fabio, 2020. "Implications of measuring value added in exports with a regional input-output table. A case of study in South America," Structural Change and Economic Dynamics, Elsevier, vol. 52(C), pages 130-140.
    3. Timon Bohn & Steven Brakman & Erik Dietzenbacher, 2018. "The role of services in globalisation," The World Economy, Wiley Blackwell, vol. 41(10), pages 2732-2749, October.
    4. Foster-McGregor, Neil & Nomaler, Önder & Verspagen, Bart, 2021. "Job Automation Risk, Economic Structure and Trade: a European Perspective," Research Policy, Elsevier, vol. 50(7).
    5. Fabienne Fortanier & Guannan Miao & Ans Kolk & Niccolò Pisani, 2020. "Accounting for firm heterogeneity in global value chains," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(3), pages 432-453, April.
    6. Atolia, Manoj & Loungani, Prakash & Marquis, Milton & Papageorgiou, Chris, 2020. "Rethinking development policy: What remains of structural transformation?," World Development, Elsevier, vol. 128(C).
    7. Caliari, Thiago & Ribeiro, Leonardo Costa & Pietrobelli, Carlo & Vezzani, Antonio, 2023. "Global value chains and sectoral innovation systems: An analysis of the aerospace industry," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 36-48.
    8. Klemen Knez & Andreja Jaklič & Metka Stare, 2021. "An extended approach to value chain analysis," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 10(1), pages 1-37, December.
    9. MARSCHINSKI Robert & DE AMORES HERNANDEZ Antonio & AMOROSO Sara & BAUER Peter & CARDANI Roberta & CSEFALVAY Zoltan & GENTY Aurelien & GKOTSIS Petros & GREGORI Wildmer & GRASSANO Nicola & HERNANDEZ GUE, 2021. "EU competitiveness: recent trends, drivers, and links to economic policy: A Synthesis Report," JRC Research Reports JRC123232, Joint Research Centre (Seville site).

    More about this item

    Keywords

    global value chain indicators; globalisation indicators; international fragmentation of production; trade in value-added;
    All these keywords.

    JEL classification:

    • C40 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - General
    • F1 - International Economics - - Trade
    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General

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