Aggregation Bias in the Measurement of U.S. Global Value Chains

Aaron Flaaen, Fariha Kamal, Eunhee Lee and Kei-Mu Yi

Working Papers from U.S. Census Bureau, Center for Economic Studies

Abstract: This paper measures global value chain (GVC) activity, defined as imported content of exports, of U.S. manufacturing plants between 2002 and 2012. We assesses the extent of aggregation bias that arises from relying on industry-level exports, imports, and output to establish three results. First, GVC activity based on industry-level data underestimate the actual degree of GVC engagement by ignoring potential correlations between import and export activities across plants within industries. Second, the bias grew over the sample period. Finally, unlike with industry-level measures, we find little slowdown in GVC integration by U.S. manufacturers.

Keywords: global value chains; aggregation bias (search for similar items in EconPapers)
JEL-codes: F1 F14 O51 (search for similar items in EconPapers)
Date: 2024-09
New Economics Papers: this item is included in nep-int
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https://www2.census.gov/library/working-papers/2024/adrm/ces/CES-WP-24-49.pdf First version, 2024 (application/pdf)

Related works:
Journal Article: Aggregation Bias in the Measurement of US Global Value Chains (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:cen:wpaper:24-49

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