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Measuring what matters in value-added trade

Author

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  • Alessandro Borin
  • Michele Mancini

Abstract

The spread of global value chains (GVCs) has given rise to new statistical tools, the inter-country input–output tables, and new analytical frameworks aimed at properly identifying production linkages between and within economies. However, several important questions remain unaddressed. This paper proposes a new toolkit for value-added accounting of trade flows at the aggregate, bilateral, and sectoral levels. The paper shows how different empirical issues require distinct accounting perspectives and maps these methodologies onto the economic questions they are best suited to address. We provide novel accounting perspectives that allow us to properly address important empirical issues. With respect to other accounting methodologies previously proposed in the literature, we offer more accurate or, in some cases, more exhaustive value-added decompositions of trade flows (e.g. by covering both domestic and foreign value-added). In addition, the paper gathers a significant amount of the related literature under one comprehensive framework.

Suggested Citation

  • Alessandro Borin & Michele Mancini, 2023. "Measuring what matters in value-added trade," Economic Systems Research, Taylor & Francis Journals, vol. 35(4), pages 586-613, October.
    • Handle: RePEc:taf:ecsysr:v:35:y:2023:i:4:p:586-613
    DOI: 10.1080/09535314.2022.2153221
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    Cited by:

    1. Borin, Alessandro & Conteduca, Francesco Paolo & Di Stefano, Enrica & Gunnella, Vanessa & Mancini, Michele & Panon, Ludovic, 2023. "Trade decoupling from Russia," International Economics, Elsevier, vol. 175(C), pages 25-44.
    2. Feás, Enrique, 2023. "The impact of the Brexit referendum on UK’s value-added exports: A structural decomposition," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1239-1254.

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