Trade in Value Added: An East Asian Perspective

Satoshi Inomata
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Satoshi Inomata: Asian Development Bank Institute (ADBI)

Trade Working Papers from East Asian Bureau of Economic Research

Abstract: This paper aims to provide a non-technical explanation of the concept of trade in value added, with particular reference to East Asia. The trade in value added approach allows us to redefine the relationship between countries of origin and destination in international trade, and thereby addresses an important issue of measuring international trade in the face of growing production sharing among different countries. In contrast to the orthodox concept of trade balances based on foreign trade statistics, it focuses on the value added contents of a traded product, and considers each country’s contribution to the value added generation in a production process.

Keywords: trade in value added approach; East Asia; production sharing; trade statistics (search for similar items in EconPapers)
JEL-codes: C67 F14 F15 (search for similar items in EconPapers)
Date: 2013-12
New Economics Papers: this item is included in nep-int
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Citations: View citations in EconPapers (6)

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