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Who Produces for Whom in the World Economy?

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  • Guillaume Daudin

    (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po, EQUIPPE - Economie Quantitative, Intégration, Politiques Publiques et Econométrie - Université de Lille, Sciences et Technologies - Université de Lille, Sciences Humaines et Sociales - PRES Université Lille Nord de France - Université de Lille, Droit et Santé)

  • Christine Rifflart

    (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po)

  • Danielle Schweisguth

    (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po)

Abstract

For two decades, the share of trade in inputs, also called vertical trade, has been dramatically increasing. In reallocating trade flows to their original input-producing industries and countries, this paper suggests a new measure of international trade: "value-added trade" and makes it possible to answer the question "who produces for whom?". In 2004, 27% of international trade was vertical trade. The industrial and geographic patterns of value-added trade are very different from those of standard trade. Value-added trade is relatively less important in regional trade but the difference is not more important for Asia than for America

Suggested Citation

  • Guillaume Daudin & Christine Rifflart & Danielle Schweisguth, 2011. "Who Produces for Whom in the World Economy?," SciencePo Working papers Main halshs-00924985, HAL.
    • Handle: RePEc:hal:spmain:halshs-00924985
    DOI: 10.1111/j.1540-5982.2011.01679.x
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00924985
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    More about this item

    Keywords

    Globalization; Vertical trade; Regionalisation;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F19 - International Economics - - Trade - - - Other

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