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Calculating Trade in Value Added

Calculating Trade in Value Added
Author: Aqib Aslam
Publisher: International Monetary Fund
Total Pages: 25
Release: 2017-08-07
Genre: Business & Economics
ISBN: 1484314484

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This paper sets out the key concepts necessary to calculate trade in value added using input-output tables. We explain the basic structure of an input-output table and the matrix algebra behind the computation of trade in value added statistics. Specifically, we compute measures of domestic value-added, foreign value added, and forward and backward linkages, as well as measures of both a country’s participation and position in global value chains. We work in detail with an example of a global input-output table for 3 countries each with 4 sectors, provided by the Eora Multi-Region Input-Output (MRIO) database. The aim is to provide an introduction to the analysis of global value chains for use in policy work. An accompanying suite of Matlab codes are provided that can be used with the full set of Eora MRIO tables.


Uncovering Value Added In Trade: New Approaches To Analyzing Global Value Chains

Uncovering Value Added In Trade: New Approaches To Analyzing Global Value Chains
Author: Yuqing Xing
Publisher: World Scientific
Total Pages: 181
Release: 2015-07-13
Genre: Business & Economics
ISBN: 9814656372

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Value chain trade has challenged economic implications of conventional trade statistics and transformed bilateral trade relationships into multilaterals. Conventional trade statistics exaggerate trade volumes and bilateral trade imbalances. It is imperative to measure trade in value-added and examine trade relations in the context of global value chains. This book is a collection of research papers on new approaches to measure trade in value added and the role of global value chains in modern international trade. It introduces the input output method for measuring trade and a direct approach for measuring the domestic value added of the People's Republic of China — the center of global assembly. In addition, it shows how to analyze trade relations in the context of global value chains.


A Method for Estimating Global Trade in Value Added Within Agriculture and Food Value Chains

A Method for Estimating Global Trade in Value Added Within Agriculture and Food Value Chains
Author: Jared Jared Greenville
Publisher:
Total Pages: 31
Release: 2017
Genre: Agriculture and Food
ISBN:

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Abstract: Global Value Chains (GVCs) have transformed production across a broad range of goods and services worldwide. Although the development of GVCs has occurred in agro-food sectors alongside other sectors, less is known about the trade that occurs within agro-food GVCs due to limited information on flows of trade in value added. This study develops an approach to calculate disaggregated indicators of GVC participation in agro-food sectors in both developed and developing countries. Specifically, the approach exploits the Global Trade Analysis Project (GTAP) database to construct an inter-country input-output (ICIO) table for the year 2011. The resulting ICIO is used to compute indicators of GVC participation based on the concept of vertical specialisation - forward and backward participation - across 20 agro-food sectors in 70 countries and/or regions. Estimates of domestic value added in exports and final demand or agro-food products, including the contribution of all industries, are also presented


Getting Value Out of Value-Added

Getting Value Out of Value-Added
Author: National Academy of Education
Publisher: National Academies Press
Total Pages: 97
Release: 2010-01-25
Genre: Education
ISBN: 030915099X

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Value-added methods refer to efforts to estimate the relative contributions of specific teachers, schools, or programs to student test performance. In recent years, these methods have attracted considerable attention because of their potential applicability for educational accountability, teacher pay-for-performance systems, school and teacher improvement, program evaluation, and research. Value-added methods involve complex statistical models applied to test data of varying quality. Accordingly, there are many technical challenges to ascertaining the degree to which the output of these models provides the desired estimates. Despite a substantial amount of research over the last decade and a half, overcoming these challenges has proven to be very difficult, and many questions remain unanswered-at a time when there is strong interest in implementing value-added models in a variety of settings. The National Research Council and the National Academy of Education held a workshop, summarized in this volume, to help identify areas of emerging consensus and areas of disagreement regarding appropriate uses of value-added methods, in an effort to provide research-based guidance to policy makers who are facing decisions about whether to proceed in this direction.


Uncovering Value Added in Trade

Uncovering Value Added in Trade
Author: Yuqing Xing
Publisher: World Scientific Publishing Company
Total Pages: 166
Release: 2015-07-27
Genre: Business & Economics
ISBN: 9789814656351

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Value chain trade has challenged economic implications of conventional trade statistics and transformed bilateral trade relationships into multilaterals. Conventional trade statistics exaggerate trade volumes and bilateral trade imbalances. It is imperative to measure trade in value-added and examine trade relations in the context of global value chains. This book is a collection of research papers on new approaches to measure trade in value added and the role of global value chains in modern international trade. It introduces the input output method for measuring trade and a direct approach for measuring the domestic value added of the People's Republic of China — the center of global assembly. In addition, it shows how to analyze trade relations in the context of global value chains.


World Development Report 2020

World Development Report 2020
Author: World Bank
Publisher: World Bank Publications
Total Pages: 511
Release: 2019-11-19
Genre: Business & Economics
ISBN: 1464814953

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Global value chains (GVCs) powered the surge of international trade after 1990 and now account for almost half of all trade. This shift enabled an unprecedented economic convergence: poor countries grew rapidly and began to catch up with richer countries. Since the 2008 global financial crisis, however, the growth of trade has been sluggish and the expansion of GVCs has stalled. Meanwhile, serious threats have emerged to the model of trade-led growth. New technologies could draw production closer to the consumer and reduce the demand for labor. And trade conflicts among large countries could lead to a retrenchment or a segmentation of GVCs. World Development Report 2020: Trading for Development in the Age of Global Value Chains examines whether there is still a path to development through GVCs and trade. It concludes that technological change is, at this stage, more a boon than a curse. GVCs can continue to boost growth, create better jobs, and reduce poverty provided that developing countries implement deeper reforms to promote GVC participation; industrial countries pursue open, predictable policies; and all countries revive multilateral cooperation.


Geopolitics, Supply Chains, and International Relations in East Asia

Geopolitics, Supply Chains, and International Relations in East Asia
Author: Etel Solingen
Publisher: Cambridge University Press
Total Pages: 321
Release: 2021-05-06
Genre: Business & Economics
ISBN: 110883356X

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An accessible overview of political, economic, and strategic dimensions of global supply chains in a changing global political economy.


Valuing Services in Trade

Valuing Services in Trade
Author: Sebastian Saez
Publisher: World Bank Publications
Total Pages: 171
Release: 2015-01-15
Genre: Business & Economics
ISBN: 1464801568

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This Toolkit provides a framework, guidelines, and set of practical tools to conduct an analysis and diagnostic of trade competitiveness in the services sector and to identify both the main constraints to improved competitiveness and the appropriate policy responses.


Measuring Trade in Value Added with Firm-level Data

Measuring Trade in Value Added with Firm-level Data
Author: Rudolfs Bems
Publisher:
Total Pages: 31
Release: 2020
Genre: Business logistics
ISBN:

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Global Value Chains have proliferated economic policy debates. Yet a key concept -- trade in value added -- is likely mismeasured because of sectoral aggregation bias stemming from reliance on input-output tables. This paper uses comprehensive firm-level data on both domestic and international transactions to study this bias. We find that sectoral aggregation leads to overstated trade in value added and, correspondingly, understated import content of gross exports. The economic magnitude of the estimated bias varies from moderate to large -- at 2-5 p.p. of gross exports for Belgium and 17 p.p. for China. We study how the interplay between within-sector heterogeneities in firm import and export intensities and firm size determine the magnitude of the sectoral aggregation bias.