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Does the distinction between gross and value‐added exports matter? An empirical investigation of export elasticities

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  • Janet Ceglowski

Abstract

This study uses bilateral U.S. export data from the OECD’s Trade in Value‐Added database to estimate and compare elasticities for three distinct export measures: conventional measures of gross exports, domestic value added in gross exports, and value‐added exports. It finds little evidence of significant differences in the income elasticities across the three export measures or in the price elasticities of gross exports and domestic value added in gross exports. However it finds a significantly higher price elasticity for value‐added exports, suggesting that conventional price elasticity estimates may underestimate the impact of a real dollar depreciation on U.S. exports of value added.

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  • Janet Ceglowski, 2019. "Does the distinction between gross and value‐added exports matter? An empirical investigation of export elasticities," Review of International Economics, Wiley Blackwell, vol. 27(1), pages 184-200, February.
    • Handle: RePEc:bla:reviec:v:27:y:2019:i:1:p:184-200
    DOI: 10.1111/roie.12371
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    Cited by:

    1. Ping Hua, 2021. "How did China rise its manufacturing domestic value added in exports through GVC moving up?," Working Papers hal-03373508, HAL.
    2. Ping Hua, 2022. "How did China Raise its Manufacturing Domestic Value added in Exports through GVC Moving up?," Post-Print hal-03767822, HAL.

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