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Metal intensity of use in the era of global value chains

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  • Zauresh Atakhanova

    (Academy of Public Administration of Kazakhstan)

  • Peter Howie

    (Nazarbayev University)

Abstract

The growing importance and complexity of global value chains distances consumption of metals embodied in final goods from the time and location of initial ore mining, processing, and trade. Fragmentation of global production complicates the analysis of metal intensity of use and requires novel approaches and types of data used. In this study, we use the trade in value-added (TiVA) database as it allows for the measurement of value added of a particular industry embodied in final demand, while accounting for contributions of domestic and foreign suppliers of intermediate goods. Recent studies show that these value-added consumption data reduce double counting that characterizes conventional gross data. Using the panel data on 63 countries over 1995–2011, we find that economic structure explains variations in metal intensity of use which we define as a ratio of value added of metals consumed to the aggregate value added. Given the declining shares of manufacturing and increasing shares of services in both advanced and developing economies, we may expect global metal intensity of use to decrease in the long run. However, metal intensity of use may receive some boosts due to expansionary stages of the business cycle and increased investment. In addition, those metals that are used in high technology applications may experience increasing intensity of use.

Suggested Citation

  • Zauresh Atakhanova & Peter Howie, 2020. "Metal intensity of use in the era of global value chains," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 33(1), pages 101-113, July.
    • Handle: RePEc:spr:minecn:v:33:y:2020:i:1:d:10.1007_s13563-019-00176-5
    DOI: 10.1007/s13563-019-00176-5
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    Cited by:

    1. Zauresh Atakhanova, 2021. "Support services in the extractive industries and the role of innovation," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 34(1), pages 141-150, April.
    2. Zauresh Atakhanova, 2021. "Kazakhstan’s oil boom, diversification strategies, and the service sector," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 34(3), pages 399-409, October.
    3. Naoki Sekiguchi, 2022. "The evolution of non-OECD countries in the twenty-first century: developments in steel trade and the role of technology," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 35(1), pages 103-132, March.

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