EconPapers    
Economics at your fingertips  
 

Five Facts about Value-Added Exports and Implications for Macroeconomics and Trade Research

Robert Johnson ()

Journal of Economic Perspectives, 2014, vol. 28, issue 2, 119-42

Abstract: Due to the rise of global supply chains, gross exports do not accurately measure the amount of value added exchanged between countries. I highlight five facts about differences between gross and value-added exports. These differences are large and growing over time, currently around 25 percent, and manufacturing trade looks more important, relative to services, in gross than value-added terms. These differences are also heterogenous across countries and bilateral partners, and changing unevenly across countries and partners over time. Taking these differences into account enables researchers to obtain better quantitative answers to important macroeconomic and trade questions. I discuss how the facts inform analysis of the transmission of shocks across countries; the mechanics of trade balance adjustments; the impact of frictions on trade; the role of endowments and comparative advantage; and trade policy.

JEL-codes: F11 F14 F23 L16 L23 (search for similar items in EconPapers)
Date: 2014
Note: DOI: 10.1257/jep.28.2.119
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (115) Track citations by RSS feed

Downloads: (external link)
http://www.aeaweb.org/articles.php?doi=10.1257/jep.28.2.119 (application/pdf)
http://www.aeaweb.org/jep/data/2802/2802-0119_data.zip (application/zip)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aea:jecper:v:28:y:2014:i:2:p:119-42

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions

Access Statistics for this article

Journal of Economic Perspectives is currently edited by Enrico Moretti

More articles in Journal of Economic Perspectives from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().

 
Page updated 2019-11-30
Handle: RePEc:aea:jecper:v:28:y:2014:i:2:p:119-42