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Decomposing value added in gross exports

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  • Sébastien Miroudot
  • Ming Ye

Abstract

Several papers using intercountry IO tables have developed frameworks to decompose value added in gross exports and to remove potential double-counting in intermediate inputs. But these papers rely on different definitions for the domestic value added, foreign value added and double-counting terms, depending in particular on the perspective from which gross exports are decomposed (world level, country level or bilateral level). At this stage, it is very difficult for any user of value-added trade statistics to know what is calculated and which type of decomposition should be used. In this paper, we provide a general framework that relies on extraction matrices to unambiguously and consistently define domestic and foreign value-added terms in the world, country and bilateral perspective. This framework allows us to classify existing decompositions based on the perspective taken and their definition of double-counting. We also indicate the most relevant decompositions for different types of trade analysis.

Suggested Citation

  • Sébastien Miroudot & Ming Ye, 2021. "Decomposing value added in gross exports," Economic Systems Research, Taylor & Francis Journals, vol. 33(1), pages 67-87, January.
  • Handle: RePEc:taf:ecsysr:v:33:y:2021:i:1:p:67-87
    DOI: 10.1080/09535314.2020.1730308
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    Citations

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    Cited by:

    1. Knez, Klemen, 2022. "Domestic Supplier Spillovers of Global Value Chains in Central and Eastern European Countries," MPRA Paper 112391, University Library of Munich, Germany.
    2. Maria Llop, 2024. "Beyond trade statistics: how much do exports actually contribute to domestic value added?," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-13, December.
    3. Miroudot, Sébastien & Ye, Ming, 2022. "Decomposing value added in gross exports from a country and bilateral perspective," Economics Letters, Elsevier, vol. 212(C).
    4. Robert Stehrer, 2021. "Source – Assembly – Sink: Value Added Flows in the Global Economy," wiiw Working Papers 209, The Vienna Institute for International Economic Studies, wiiw.
    5. Xinheng Liu & Ziyuan Pan & Dongli Fang, 2023. "Agglomeration, resource reallocation and domestic value‐added ratio in exports," Growth and Change, Wiley Blackwell, vol. 54(1), pages 182-213, March.
    6. Klemen Knez & Andreja Jaklič & Metka Stare, 2021. "An extended approach to value chain analysis," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 10(1), pages 1-37, December.
    7. Eduardo Rodrigues Sanguinet & Augusto Mussi Alvim & Miguel Atienza, 2022. "Trade agreements and participation in global value chains: Empirical evidence from Latin America," The World Economy, Wiley Blackwell, vol. 45(3), pages 702-738, March.
    8. Meng, Bo & Ye, Ming, 2022. "Smile curves in global value chains: Foreign- vs. domestic-owned firms; the U.S. vs. China," Structural Change and Economic Dynamics, Elsevier, vol. 60(C), pages 15-29.
    9. Maria Llop, 2022. "Quantifying the employment impacts of gross exports: a global accounting perspective," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 11(1), pages 1-17, December.

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