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Estimating Extended Supply‐Use Tables in Basic Prices with Firm Heterogeneity for the United States: A Proof of Concept

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  • Fetzer, James
  • Howells III, Thomas F.
  • Jones, Lin
  • Strassner, Erich
  • Wang, Zhi

Abstract

This paper presents proof-of-concept trade-in-value added (TiVA) statistics estimated from extended supply-use tables for the United States that account for firm heterogeneity. The tables used to estimate the TiVA statistics extend recently-introduced supply-use tables for the United States by disaggregating the components of supply and use by multinational and other firms. Recent research has shown both the advantages of measuring trade on a value added basis when analyzing bilateral trade flows and the dominance of multinational enterprises in U.S. trade in goods and services. Our TiVA statistics for the United States include measures based on traditional supply-use presentations as well as statistics that reflect firm-level heterogeneity for the year 2011. The comparative analysis of the two sets of statistics allows us to understand better how firms within industries engage in global value chains and if the incorporation of firm heterogeneity provides a more accurate measurement of TiVA. We find that domestic value added as a share of the value of exports is similar within large industry groups. However, there is much more variation in the value added share of exports when firm type is accounted for. Also, the additional granularity shows the share of this value added that comes directly from the producing industry varies much more across industries.

Suggested Citation

  • Fetzer, James & Howells III, Thomas F. & Jones, Lin & Strassner, Erich & Wang, Zhi, 2016. "Estimating Extended Supply‐Use Tables in Basic Prices with Firm Heterogeneity for the United States: A Proof of Concept," Conference papers 332686, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:332686
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    References listed on IDEAS

    as
    1. James J. Fetzer & Erich H. Strassner, 2015. "Identifying Heterogeneity in the Production Components of Globally Engaged Business Enterprises in the United States," BEA Working Papers 0130, Bureau of Economic Analysis.
    2. James Fetzer & Erich Strassner, 2015. "Identifying Heterogeneity in the Production Components of Globally Engaged Business Enterprises in the United States," EcoMod2015 8741, EcoMod.
    3. Heiwai Tang & Fei Wang & Zhi Wang, 2014. "The Domestic Segment of Global Supply Chains in China under State Capitalism," CESifo Working Paper Series 4797, CESifo.
    4. Johnson, Robert C. & Noguera, Guillermo, 2012. "Accounting for intermediates: Production sharing and trade in value added," Journal of International Economics, Elsevier, vol. 86(2), pages 224-236.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Research Methods/ Statistical Methods;

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General

    Statistics

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