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Exploring the policy dimensions of trade in value-added

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  • Escaith, Hubert

Abstract

Global Value Chains are a dominant feature of today’s global economy, yet their empirical analysis is still incipient. Building on a recent OECD-WTO database and the results of an on-going research program at WTO, the present essay contributes at filling this gap, after introducing the main concpts used for measuring trade in value-added. The effective protection on industries resulting from tariff duties is analysed from the particular perspective of the international fragmentation of international supply chains. The calculation of effective protection rates provides important insights on the impact of nominal protection on international competitiveness in a trade in tasks perspective. Using Exploratory Data Analysis, the paper identifies also typologies of value-added traders according to economic characteristics and trade policy options.

Suggested Citation

  • Escaith, Hubert, 2014. "Exploring the policy dimensions of trade in value-added," MPRA Paper 59891, University Library of Munich, Germany, revised 08 Nov 2014.
  • Handle: RePEc:pra:mprapa:59891
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    File URL: https://mpra.ub.uni-muenchen.de/59891/1/MPRA_paper_59891.pdf
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    References listed on IDEAS

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    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. Bela Balassa, 1965. "Tariff Protection in Industrial Countries: An Evaluation," Journal of Political Economy, University of Chicago Press, vol. 73, pages 573-573.
    3. Marcel P. Timmer & Bart Los & Robert Stehrer & Gaaitzen J. Vries, 2013. "Fragmentation, incomes and jobs: an analysis of European competitiveness," Economic Policy, CEPR;CES;MSH, vol. 28(76), pages 613-661, October.
    4. 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.
    5. De Benedictis Luca & Nenci Silvia & Santoni Gianluca & Tajoli Lucia & Vicarelli Claudio, 2014. "Network Analysis of World Trade using the BACI-CEPII Dataset," Global Economy Journal, De Gruyter, vol. 14(3-4), pages 1-57, October.
    6. Diakantoni, Antonia & Escaith, Hubert, 2012. "Reassessing effective protection rates in a trade in tasks perspective: Evolution of trade policy in factory Asia," WTO Staff Working Papers ERSD-2012-13, World Trade Organization (WTO), Economic Research and Statistics Division.
    7. Escaith, Hubert & Gaudin, Hadrien, 2014. "Clustering value-added trade: Structural and policy dimensions," WTO Staff Working Papers ERSD-2014-08, World Trade Organization (WTO), Economic Research and Statistics Division.
    8. Kei-Mu Yi, 2003. "Can Vertical Specialization Explain the Growth of World Trade?," Journal of Political Economy, University of Chicago Press, vol. 111(1), pages 52-102, February.
    9. W. M. Corden, 1966. "The Structure of a Tariff System and the Effective Protective Rate," Journal of Political Economy, University of Chicago Press, vol. 74, pages 221-221.
    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. Cernat, Lucian & Kutlina-Dimitrova, Zornitsa, 2014. "Thinking in a box: A ‘mode 5’ approach to service trade," DG TRADE Chief Economist Notes 2014-1, Directorate General for Trade, European Commission.
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    1. repec:bla:worlde:v:41:y:2018:i:10:p:2732-2749 is not listed on IDEAS

    More about this item

    Keywords

    International Trade; Tariff Policy; Effective Protection; Input-Output Analysis; Trade in Value Added; Competitiveness;

    JEL classification:

    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F60 - International Economics - - Economic Impacts of Globalization - - - General
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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