Tracing Value-Added and Double Counting in Gross Exports: Comment
Marcel Timmer and
Gaaitzen de Vries
American Economic Review, 2016, vol. 106, issue 7, 1958-66
In a recent contribution to the AER, Koopman, Wang, and Wei (2014) proposed a decomposition of a country's gross exports into value-added components and double-counted terms. It is motivated by complex manipulation of basic accounting identities. In this comment we provide an alternative framework based on "hypothetical extraction." This parsimonious approach provides a clear definition of domestic value added in exports and has a natural extension into decompositions of bilateral export flows.
JEL-codes: E01 E16 F14 F23 L14 (search for similar items in EconPapers)
Note: DOI: 10.1257/aer.20140883
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