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Aggregate Demand, Vertical Specialization and Growth Accounting

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  • Hubert Escaith

    (World Trade Organization, Rue de Lausanne 154, CH-1211 Geneva 21, Switzerland)

Abstract

Global manufacturing and international supply chains have changed the way trade and economic growth are understood today. Recent statistical advances suggest new ways of looking at growth accounting when global value chains (GVCs) — articulating supply and demand chains from an international perspective — are taken into consideration. The method is applied to the G-20 countries, a group of leading developed and developing economies that took a prominent role in fostering and managing global economic governance. The demand dynamics is first analyzed through a growth-accounting decomposition, then through the long term determinants of income elasticity of imports and the household marginal propensity to consume imported products.

Suggested Citation

  • Hubert Escaith, 2016. "Aggregate Demand, Vertical Specialization and Growth Accounting," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 7(03), pages 1-20, October.
    • Handle: RePEc:wsi:jicepx:v:07:y:2016:i:03:n:s1793993316500162
    DOI: 10.1142/S1793993316500162
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    References listed on IDEAS

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