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Trade in Value Added: An East Asian Perspective

Author

Listed:
  • Inomata, Satoshi

    (Asian Development Bank Institute)

Abstract

This paper aims to provide a non-technical explanation of the concept of trade in value added, with particular reference to East Asia. The trade in value added approach allows us to redefine the relationship between countries of origin and destination in international trade, and thereby addresses an important issue of measuring international trade in the face of growing production sharing among different countries. In contrast to the orthodox concept of trade balances based on foreign trade statistics, it focuses on the value added contents of a traded product, and considers each country’s contribution to the value added generation in a production process.

Suggested Citation

  • Inomata, Satoshi, 2013. "Trade in Value Added: An East Asian Perspective," ADBI Working Papers 451, Asian Development Bank Institute.
  • Handle: RePEc:ris:adbiwp:0451
    as

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    File URL: http://www.adbi.org/files/2013.12.10.wp451.trade.in.value.added.east.asian.perspective.pdf
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    References listed on IDEAS

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    1. Guillaume Daudin & Christine Rifflart & Danielle Schweisguth, 2011. "Who produces for whom in the world economy?," Canadian Journal of Economics, Canadian Economics Association, vol. 44(4), pages 1403-1437, November.
    2. Meng, Bo & Fang, Yong & Yamano, Norihiko, 2012. "Measuring global value chains and regional economic integration : an international input-output approach," IDE Discussion Papers 362, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    3. 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.
    4. Yuqing Xing & Neal Detert, 2010. "How the iPhone Widens the United States Trade Deficit with the People’s Republic of China," Trade Working Papers 23280, East Asian Bureau of Economic Research.
    5. Monge-Ariño, Francisco, 2011. "Costa Rica: Trade opening, FDI attraction and global production sharing," WTO Staff Working Papers ERSD-2011-09, World Trade Organization (WTO), Economic Research and Statistics Division.
    6. 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.
    7. Robert Koopman & Zhi Wang & Shang-Jin Wei, 2008. "How Much of Chinese Exports is Really Made In China? Assessing Domestic Value-Added When Processing Trade is Pervasive," NBER Working Papers 14109, National Bureau of Economic Research, Inc.
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    More about this item

    Keywords

    trade in value-added; input-output tables; factory asia; foreign trade statistics;

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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