IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Just how big is global production sharing?

  • Yeats, Alexander J.
Registered author(s):

    Sharing different stages of manufacturing between countries is of major and growing importance. But because of previous deficiencies in the Standard International Trade Classification (SITC Revision 1) system, it was not possible to differentiate between the international trade in components and parts and the exchange of fully fabricated manufactured goods. Such a distinction was needed to empirically estimate theamount of global production sharing. Changes in the SITC classification system (Revision 2) now allow one to approximate how much production sharing occurs within the key machinery and transportation equipment (SITC 7) group, which includes about 50 percent of world trade in all manufactures. In 1995, OECD (Organization for Economic Cooperation and Development) exports of parts and components in this group totaled $440 billion, which was about 30 percent of all shipments (components plus assembled goods) of machinery and transportation equipment. Developing countries produced and exported an additional $100 billion of these products -- which indicates global exports exceeded one-half trillion dollars. But the extent of production sharing is clearly greater than these figures indicate, because the SITC Revision 2 system does not allow one to distinguish between components and parts in chemicals or other manufactured goods. The data also show that over the past decade trade in machinery and transport equipment components has grown considerably faster than final stage products in this group. A different form of production sharing involves the use of special tariff provisions for the re-import of domestically produced components that have been assembled abroad. A second data source on this activity indicates that trade in these goods totals about $100 billion annually, with most of the activity involving the European Union and the United States. (Again, the available data probably understate the importance of this exchange.) Even so, these supplemental statistics illustrate the importance of this activity to some developing countries, as more than 40 percent of manufactured exports from the Dominican Republic, El Salvador, Haiti, Jamaica, and Mexico involve assembly operations using components manufactured abroad.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/1998/01/01/000009265_3980312102542/Rendered/PDF/multi0page.pdf
    Download Restriction: no

    Paper provided by The World Bank in its series Policy Research Working Paper Series with number 1871.

    as
    in new window

    Length:
    Date of creation: 31 Jan 1998
    Date of revision:
    Handle: RePEc:wbk:wbrwps:1871
    Contact details of provider: Postal: 1818 H Street, N.W., Washington, DC 20433
    Phone: (202) 477-1234
    Web page: http://www.worldbank.org/
    Email:


    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:1871. 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: (Roula I. Yazigi)

    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 references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link 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 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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.