IDEAS home Printed from https://ideas.repec.org/a/aea/apandp/v114y2024p136-42.html
   My bibliography  Save this article

Aggregation Bias in the Measurement of US Global Value Chains

Author

Listed:
  • Aaron Flaaen
  • Fariha Kamal
  • Eunhee Lee
  • Kei-Mu Yi

Abstract

This paper employs US census microdata to construct establishment-level measures of global value chains (GVCs) and then assesses aggregation bias—the bias occurring when an entire industry is essentially treated as a single establishment. Our establishment-level measures indicate little slowdown in GVC expansion between 2002 and 2012. Related, the aggregation bias is negative, and it increased during this period. A decomposition reveals that most of the increase is from within establishments with high export and import intensities. Our results suggest that granular GVC measures will provide further understanding about how firms and economies adjust to shocks.

Suggested Citation

  • Aaron Flaaen & Fariha Kamal & Eunhee Lee & Kei-Mu Yi, 2024. "Aggregation Bias in the Measurement of US Global Value Chains," AEA Papers and Proceedings, American Economic Association, vol. 114, pages 136-142, May.
    • Handle: RePEc:aea:apandp:v:114:y:2024:p:136-42
    DOI: 10.1257/pandp.20241022
    as

    Download full text from publisher

    File URL: https://www.aeaweb.org/doi/10.1257/pandp.20241022
    Download Restriction: no
    File URL: https://doi.org/10.3886/E201621V1
    Download Restriction: no
    File URL: https://www.aeaweb.org/doi/10.1257/pandp.20241022.ds
    Download Restriction: Access to full text is restricted to AEA members and institutional subscribers.
    File URL: https://libkey.io/10.1257/pandp.20241022?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    More about this item

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

    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:aea:apandp:v:114:y:2024:p:136-42. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Michael P. Albert (email available below). General contact details of provider: https://edirc.repec.org/data/aeaaaea.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.