IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/57276.html

Clustering Value-Added Trade: Structural and Policy Dimensions

Author

Listed:
  • Escaith, Hubert
  • Gaudin, Hadrien

Abstract

The paper uses exploratory data analysis to propose a typology of exporters according to the value-added content of their exports as well as other economic and trade policy characteristics. In the process, it defines clusters of countries according to the multi-dimensional criteria defined by value-added, economic and trade policy indicators. Results show that natural resources and services orientation are among the most determinant variables. The level of economic development remains a crucial determinant of the Trade in Value-Added profile, more than the sheer size of the economy. Pro-active value-chain up-grading strategies foster a higher foreign content in exports, compensating the lower domestic margin by higher volumes. Protectionist policies are not particularly successful in increasing higher share of domestic content, except in services exports; but in this case, volumes remain marginal.

Suggested Citation

  • Escaith, Hubert & Gaudin, Hadrien, 2014. "Clustering Value-Added Trade: Structural and Policy Dimensions," MPRA Paper 57276, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:57276
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/57276/1/MPRA_paper_57276.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. de Sousa, José, 2012. "The currency union effect on trade is decreasing over time," Economics Letters, Elsevier, vol. 117(3), pages 917-920.
    2. 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.
    3. Mohammad Amin & Asif Islam, 2014. "Imports of intermediate inputs and country size," Applied Economics Letters, Taylor & Francis Journals, vol. 21(11), pages 738-741, July.
    4. Andrew K. Rose, 2006. "Size Really Doesn't Matter: In Search of a National Scale Effect," NBER Working Papers 12191, National Bureau of Economic Research, Inc.
    5. De Backer, Koen & Miroudot, Sébastien, 2014. "Mapping global value chains," Libros de la CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 37176.
    6. repec:spo:wpecon:info:hdl:2441/2537 is not listed on IDEAS
    7. Diakantoni, Antonia & Escaith, Hubert, 2014. "Trade in tasks, tariff policy and effective protection rates," WTO Staff Working Papers ERSD-2014-22, World Trade Organization (WTO), Economic Research and Statistics Division.
    8. Guillaume Daudin & Paola Monperrus-Veroni & Christine Rifflart & Danielle Schweisguth, 2006. "Le commerce extérieur en valeur ajoutée," Revue de l'OFCE, Presses de Sciences-Po, vol. 98(3), pages 129-165.
    9. Diakantoni, Antonia & Escaith, Hubert, 2009. "Mapping the tariff waters," WTO Staff Working Papers ERSD-2009-13, World Trade Organization (WTO), Economic Research and Statistics Division.
    10. Erik Dietzenbacher & Isidoro Romero, 2007. "Production Chains in an Interregional Framework: Identification by Means of Average Propagation Lengths," International Regional Science Review, , vol. 30(4), pages 362-383, October.
    11. Hummels, David & Ishii, Jun & Yi, Kei-Mu, 2001. "The nature and growth of vertical specialization in world trade," Journal of International Economics, Elsevier, vol. 54(1), pages 75-96, June.
    12. Hubert Escaith, 2014. "Mapping global value chains and measuring trade in tasks," Chapters, in: Benno Ferrarini & David Hummels (ed.), Asia and Global Production Networks, chapter 9, pages 287-337, Edward Elgar Publishing.
    13. repec:spo:wpmain:info:hdl:2441/2537 is not listed on IDEAS
    14. Ng, Francis & Yeats, Alexander, 1999. "Production sharing in East Asia : who does what for whom, and why?," Policy Research Working Paper Series 2197, The World Bank.
    15. Gene M. Grossman & Esteban Rossi-Hansberg, 2008. "Trading Tasks: A Simple Theory of Offshoring," American Economic Review, American Economic Association, vol. 98(5), pages 1978-1997, December.
    16. Robert Koopman & William Powers & Zhi Wang & Shang-Jin Wei, 2010. "Give Credit Where Credit Is Due: Tracing Value Added in Global Production Chains," NBER Working Papers 16426, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Claudius Gräbner-Radkowitsch & Dennis Tamesberger & Philipp Heimberger & Timo Kapelari & Jakob Kapeller, 2022. "Trade Models In The European Union," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 67(235), pages 7-36, October –.
    2. Escaith, Hubert, 2014. "Exploring the policy dimensions of trade in value-added," MPRA Paper 59891, University Library of Munich, Germany, revised 08 Nov 2014.
    3. Escaith, Hubert, 2016. "Revisiting growth accounting from a trade in value-added perspective," WTO Staff Working Papers ERSD-2016-01, World Trade Organization (WTO), Economic Research and Statistics Division.
    4. Diakantoni, Antonia & Escaith, Hubert, 2014. "Trade in tasks, tariff policy and effective protection rates," MPRA Paper 60675, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nenci, Silvia & Fusacchia, Ilaria & Giunta, Anna & Montalbano, Pierluigi & Pietrobelli, Carlo, . "Mapping global value chain participation and positioning in agriculture and food: stylised facts, empirical evidence and critical issues," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 11(2).
    2. Hubert Escaith, 2014. "Mapping global value chains and measuring trade in tasks," Chapters, in: Benno Ferrarini & David Hummels (ed.), Asia and Global Production Networks, chapter 9, pages 287-337, Edward Elgar Publishing.
    3. Pierluigi Montalbano & Silvia Nenci & Carlo Pietrobelli, 2018. "Opening and linking up: firms, GVCs, and productivity in Latin America," Small Business Economics, Springer, vol. 50(4), pages 917-935, April.
    4. Gabriele di Filippo, 2018. "What place does Luxembourg hold in global value chains?," BCL working papers 120, Central Bank of Luxembourg.
    5. Richard Baldwin & Rebecca Freeman & Angelos Theodorakopoulos, 2022. "Horses for Courses: Measuring Foreign Supply Chain Exposure," NBER Working Papers 30525, National Bureau of Economic Research, Inc.
    6. 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.
    7. Yu, Chunjiao & Luo, Zhechong, 2018. "What are China's real gains within global value chains? Measuring domestic value added in China's exports of manufactures," China Economic Review, Elsevier, vol. 47(C), pages 263-273.
    8. Vrh, Nataša, 2015. "Pay-off to Participation in Global Value Chains: How Much are New EU Member States Lagging behind the Rest of EU Countries in Terms of Domestic Value Added in Exports?," MPRA Paper 67805, University Library of Munich, Germany.
    9. Antimiani, Alessandro & Fusacchia, Ilaria & Salvatici, Luca, 2016. "Value Added Trade Restrictiveness Indexes. Measuring Protection with Global Value Chains," Conference papers 332745, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    10. Richard Baldwin & Javier Lopez-Gonzalez, 2015. "Supply-chain Trade: A Portrait of Global Patterns and Several Testable Hypotheses," The World Economy, Wiley Blackwell, vol. 38(11), pages 1682-1721, November.
    11. Victor Kummritz, 2015. "Global Value Chains: Benefiting the Domestic Economy?," IHEID Working Papers 02-2015, Economics Section, The Graduate Institute of International Studies.
    12. Meng, Bo & Ye, Ming, 2022. "Smile curves in global value chains: Foreign- vs. domestic-owned firms; the U.S. vs. China," Structural Change and Economic Dynamics, Elsevier, vol. 60(C), pages 15-29.
    13. Konstantins Benkovskis & Julia Wörz, 2014. "“Made in China” – How Does it Affect Measures of Competitiveness?," Working Papers 193, Oesterreichische Nationalbank (Austrian Central Bank).
    14. Halit Yanikkaya & Abdullah Altun & Pınar Tat, 2022. "Does the Complexity of GVC Participation Matter for Productivity and Output Growth?," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(4), pages 2038-2068, August.
    15. Maria Savona, 2021. "Revisiting High Development Theory to Explain Upgrading Prospects in Business Services Global Value Chains," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(2), pages 206-226, April.
    16. Biswajit Banerjee & Juraj Zeman, 2022. "Determinants of global value chain participation: cross-country analysis," Indian Economic Review, Springer, vol. 57(1), pages 59-95, June.
    17. Montalbano, Pierluigi & Nenci, Silvia, 2022. "Does global value chain participation and positioning in the agriculture and food sectors affect economic performance? A global assessment," Food Policy, Elsevier, vol. 108(C).
    18. Jean Baliè & Davide Del Prete & Emiliano Magrini & Pierluigi Montalbano & Silvia Nenci, 2017. "Agriculture and Food Global Value Chains in Sub-Saharan Africa: Does bilateral trade policy impact on backward and forward participation?," Working Papers 03/2017, IMT School for Advanced Studies Lucca, revised Feb 2017.
    19. C. Duprez & L. Dresse, 2013. "The Belgian economy in global value chains. An exploratory analysis," Economic Review, National Bank of Belgium, issue ii, pages 07-21, September.
    20. Lorenzo Cresti & Maria Enrica Virgillito, 2023. "Weak sectors and weak ties? Labour dependence and asymmetric positioning in GVCs," LEM Papers Series 2023/10, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

    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:pra:mprapa:57276. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.