IDEAS home Printed from https://ideas.repec.org/p/hal/wpaper/hal-01486978.html
   My bibliography  Save this paper

The Gravity Model, Global Value Chain and the Brazilian States

Author

Listed:
  • Joaquim Guilhoto

    (USP - Inst Fis, Sao Paulo)

  • Jean-Marc Siroën

    (LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique)

  • Aycil Yücer

    (LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique)

Abstract

The WTO and the OECD along with many other organizations, suggest trade in value-added is a "better" measuring system than gross value in order to better understand the impact of trade on employment, growth and production . When it comes to the "domestic" value chain and internalspecializations, internal trade statistics are rarely available. In this work we use a gravity model basedon the estimation of exports of the Brazilian states, considered as trade entities, both in traditionalterms of gross value and in terms of value-added. Our method is based on an Input-Output table for 2008. The results of the bilateral gravity model for the Brazilian states' exports show that the maindeterminants (GDP, distance etc.) are fairly similar when exports are estimated in gross or value-added terms.

Suggested Citation

  • Joaquim Guilhoto & Jean-Marc Siroën & Aycil Yücer, 2017. "The Gravity Model, Global Value Chain and the Brazilian States," Working Papers hal-01486978, HAL.
    • Handle: RePEc:hal:wpaper:hal-01486978
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Carvalho, Luciano Castro de & Di Serio, Luiz Carlos & Vasconcellos, Marcos Augusto de, 2012. "Competitividade das nações: análise da métrica utilizada pelo World Economic Forum," RAE - Revista de Administração de Empresas, FGV-EAESP Escola de Administração de Empresas de São Paulo (Brazil), vol. 52(4), July.
    2. Daria Taglioni & Richard Baldwin, 2014. "Gravity chains: Estimating bilateral trade flows when parts and components trade is important," Journal of Banking and Financial Economics, University of Warsaw, Faculty of Management, vol. 2(2), pages 61-82, November.
    3. Escaith, Hubert & Lindenberg, Nannette & Miroudot, Sébastien, 2010. "International supply chains and trade elasticity in times of global crisis," WTO Staff Working Papers ERSD-2010-08, World Trade Organization (WTO), Economic Research and Statistics Division.
    4. Guilhoto, J. J. M. & Sesso Filho, U. A., 2005. "Estimação da Matriz Insumo-Produto a Partir De Dados Preliminares das Contas Nacionais [Estimation of input-output matrix using preliminary data from national accounts]," MPRA Paper 38212, University Library of Munich, Germany.
    5. Kei-Mu Yi, 2003. "Can Vertical Specialization Explain the Growth of World Trade?," Journal of Political Economy, University of Chicago Press, vol. 111(1), pages 52-102, February.
    6. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
    7. Jyrki Ali-Yrkkö & Petri Rouvinen & Timo Seppälä & Pekka Ylä-Anttila, 2011. "Who Captures Value in Global Supply Chains? Case Nokia N95 Smartphone," Journal of Industry, Competition and Trade, Springer, vol. 11(3), pages 263-278, September.
    8. Westbrock, Bastian & Bosker, Maarten, 2014. "A theory of trade in a global production network," CEPR Discussion Papers 9870, C.E.P.R. Discussion Papers.
    9. van Bergeijk,Peter A. G. & Brakman,Steven (ed.), 2010. "The Gravity Model in International Trade," Cambridge Books, Cambridge University Press, number 9780521196154, October.
    10. Guilhoto, Joaquim José Martins & Sesso Filho, Umberto Antonio, 2010. "Estimação da matriz insumo-produto utilizando dados preliminares das contas nacionais: aplicação e análise de indicadores econômicos para o Brasil em 2005 [Estimation of input-output matrix using p," MPRA Paper 37539, University Library of Munich, Germany.
    11. Kei-Mu Yi, 2010. "Can Multistage Production Explain the Home Bias in Trade?," American Economic Review, American Economic Association, vol. 100(1), pages 364-393, March.
    12. McCallum, John, 1995. "National Borders Matter: Canada-U.S. Regional Trade Patterns," American Economic Review, American Economic Association, vol. 85(3), pages 615-623, June.
    13. Hummels, David & Ishii, Jun & Yi, Kei-Mu, 2001. "The nature and growth of vertical specialization in world trade," Journal of International Economics, Elsevier, vol. 54(1), pages 75-96, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Magdalena Olczyk & Aleksandra Kordalska, 2017. "Gross Exports Versus Value-Added Exports: Determinants and Policy Implications for Manufacturing Sectors in Selected CEE Countries," Eastern European Economics, Taylor & Francis Journals, vol. 55(1), pages 91-109, January.
    2. Njike, Arnold, 2019. "Are African exports that weak ? A trade in value-added approach," MPRA Paper 97658, University Library of Munich, Germany.
    3. Emmanouil Karakostas, 2022. "The Effects of Protectionism on the Exports of the Trade Partners: A Composite Index," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 15(1), pages 58-70, July.
    4. Françoise Okah Efogo, 2020. "Does trade in services improve African participation in global value chains?," African Development Review, African Development Bank, vol. 32(4), pages 758-772, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Florent Bédécarrats & Isabelle Guérin & François Roubaud, 2015. "The gold standard for randomized evaluations: from discussion of method to political economy," Working Papers DT/2015/01, DIAL (Développement, Institutions et Mondialisation).
    2. Guilhoto, Joaquim José Martins & Siroën, Jean-Marc & Yucer, Ayçil, 2013. "Internal and International Vertical Specialization– Estimations For Brazil and new Approach to Gravity Models," MPRA Paper 46897, University Library of Munich, Germany.
    3. Pol Antràs & Alonso de Gortari, 2020. "On the Geography of Global Value Chains," Econometrica, Econometric Society, vol. 88(4), pages 1553-1598, July.
    4. repec:dau:papers:123456789/11720 is not listed on IDEAS
    5. Inmaculada Martínez-Zarzoso & Martina Vidovic & Anca M. Voicu, 2014. "EU-Accession Effects on Sectoral Trade: A Helpman-Melitz-Rubinstein Approach with Panel Data," CESifo Working Paper Series 4903, CESifo.
    6. Christian Volpe Martincus, 2016. "Out of the Border Labyrinth: An Assessment of Trade Facilitation Initiatives in Latin America and the Caribbean," IDB Publications (Books), Inter-American Development Bank, number 96856, February.
    7. Agnosteva, Delina E. & Anderson, James E. & Yotov, Yoto V., 2019. "Intra-national trade costs: Assaying regional frictions," European Economic Review, Elsevier, vol. 112(C), pages 32-50.
    8. Martínez-Zarzoso, Inmaculada & Voicu, Anca M. & Vidovic, Martina, 2011. "CEECs Integration into Regional Production Networks. Trade Effects of EU-Accession," Proceedings of the German Development Economics Conference, Berlin 2011 55, Verein für Socialpolitik, Research Committee Development Economics.
    9. James E. Anderson & Eric van Wincoop, 2004. "Trade Costs," Journal of Economic Literature, American Economic Association, vol. 42(3), pages 691-751, September.
    10. Franco-Bedoya, Sebastian & Frohm, Erik, 2020. "Global trade in final goods and intermediate inputs: impact of FTAs and reduced “Border Effects”," Working Paper Series 2410, European Central Bank.
    11. Jean-Marc Siroën & Aycil Yucer, 2012. "The impact of MERCOSUR on trade of Brazilian states," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 148(3), pages 553-582, September.
    12. Jean Baliè & Davide Del Prete & Emiliano Magrini & Pierluigi Montalbano & Silvia Nenci, 2017. "Agriculture and Food Global Value Chains in Sub-Saharan Africa: Does bilateral trade policy impact on backward and forward participation?," Working Papers 03/2017, IMT School for Advanced Studies Lucca, revised Feb 2017.
    13. Willert, Bianca, 2017. "How intermediates trade affects the formation of free trade agreements: A study analyzing pairwise trade flows of 70 countries," Thuenen-Series of Applied Economic Theory 147, University of Rostock, Institute of Economics, revised 2017.
    14. Robert C. Johnson & Guillermo Noguera, 2012. "Fragmentation and Trade in Value Added over Four Decades," NBER Working Papers 18186, National Bureau of Economic Research, Inc.
    15. Franco, Sebastian & Frohm, Erik, 2018. "Reduced "Border Effects", FTAs and International Trade," Working Paper Series 356, Sveriges Riksbank (Central Bank of Sweden).
    16. Athukorala, Prema-chandra, 2014. "How India Fits into Global Production Sharing: Experience, Prospects, and Policy Options," India Policy Forum, National Council of Applied Economic Research, vol. 10(1), pages 57-116.
    17. E. M. Bosker & Bastian Westbrock, 2014. "A theory of trade in a global production network," Working Papers 14-14, Utrecht School of Economics.
    18. Kei-Mu Yi, 2005. "Vertical specialization and the border effect puzzle," Working Papers 05-24, Federal Reserve Bank of Philadelphia.
    19. Gordeev, Dmitriy (Гордеев, Дмитрий) & Idrisova, Vittoria (Идрисова, Виттория) & Kaukin, Andrei (Каукин, Андрей) & Ponomarev, Yuriy (Пономарев, Юрий) & Filicheva, Evgeniya (Филичева, Евгения), 2016. "Analysis of Global Supply Chains in International Trade Patterns [Анализ Глобальных Цепочек В Моделях Международной Торговли]," Working Papers 765, Russian Presidential Academy of National Economy and Public Administration.
    20. Pierluigi Montalbano & Silvia Nenci & Laura Dell'Agostino, 2019. "A non-parametric re-assessment of the trade effects of the euro using value added data," Working Papers 9/19, Sapienza University of Rome, DISS.
    21. Inmaculada Martinez-Zarzoso & Anca Voicu & Martina Vidovic, 2015. "Central East European Countries’ accession into the European Union: role of extensive margin for trade in intermediate and final goods," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 42(4), pages 825-844, November.

    More about this item

    Keywords

    Input-Output Analysis; Commerce international; Global supply-chain; Vertical Specialization; Spécialisation verticale; Brésil; chaîne globale de valeur; Intranational trade; Brazil; analyse Input-Output;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:wpaper:hal-01486978. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.