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Exploring the policy dimensions of trade in value-added

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  • Escaith, Hubert

Abstract

Global Value Chains are a dominant feature of today’s global economy, yet their empirical analysis is still incipient. Building on a recent OECD-WTO database and the results of an on-going research program at WTO, the present essay contributes at filling this gap, after introducing the main concpts used for measuring trade in value-added. The effective protection on industries resulting from tariff duties is analysed from the particular perspective of the international fragmentation of international supply chains. The calculation of effective protection rates provides important insights on the impact of nominal protection on international competitiveness in a trade in tasks perspective. Using Exploratory Data Analysis, the paper identifies also typologies of value-added traders according to economic characteristics and trade policy options.

Suggested Citation

  • Escaith, Hubert, 2014. "Exploring the policy dimensions of trade in value-added," MPRA Paper 59891, University Library of Munich, Germany, revised 08 Nov 2014.
    • Handle: RePEc:pra:mprapa:59891
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    References listed on IDEAS

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    11. Diakantoni, Antonia & Escaith, Hubert, 2014. "Trade in tasks, tariff policy and effective protection rates," WTO Staff Working Papers ERSD-2014-22, World Trade Organization (WTO), Economic Research and Statistics Division.
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    Cited by:

    1. Timon Bohn & Steven Brakman & Erik Dietzenbacher, 2018. "The role of services in globalisation," The World Economy, Wiley Blackwell, vol. 41(10), pages 2732-2749, October.
    2. Nam Hoang Vu & Tuan Anh Bui & Tram Bao Hoang & Hanh My Pham, 2022. "Information technology adoption and integration into global value chains: Evidence from small‐ and medium‐sized enterprises in Vietnam," Journal of International Development, John Wiley & Sons, Ltd., vol. 34(2), pages 259-286, March.
    3. Francis Lwesya, 2022. "Integration into regional or global value chains and economic upgrading prospects: an analysis of the East African Community (EAC) bloc," Future Business Journal, Springer, vol. 8(1), pages 1-14, December.
    4. Upalat Korwatanasakul, 2023. "Thailand and the Middle-Income Trap: An Analysis from the Global Value Chain Perspective," PIER Discussion Papers 202, Puey Ungphakorn Institute for Economic Research.
    5. Olivera Kostoska & Sonja Mitikj & Petar Jovanovski & Ljupco Kocarev, 2020. "Core-periphery structure in sectoral international trade networks: A new approach to an old theory," PLOS ONE, Public Library of Science, vol. 15(4), pages 1-24, April.
    6. Bhushan Praveen Jangam & Badri Narayan Rath, 2020. "Cross-country convergence in global value chains: Evidence from club convergence analysis," International Economics, CEPII research center, issue 163, pages 134-146.

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    More about this item

    Keywords

    International Trade; Tariff Policy; Effective Protection; Input-Output Analysis; Trade in Value Added; Competitiveness;
    All these keywords.

    JEL classification:

    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F60 - International Economics - - Economic Impacts of Globalization - - - General
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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