International Production Fragmentation: Approaches to Measuring

Marina Gamilovna Mazitova ()
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Marina Gamilovna Mazitova: Economic Research Institute FEB RAS

Spatial Economics=Prostranstvennaya Ekonomika, 2018, issue 2, 154-169

Abstract: The article presents the classification of study methods of international production fragmentation depending on the source of data: custom statistics on processing trade, international trade on parts and components, input-output tables. The author conducted comparative analysis of data sources and study methods and described the examples of using various methods depending on the aspects of research. Based on the statistics of processing trade one can study only certain cases of international production fragmentation, when components or materials are exported (imported) to be processed abroad and then re-imported (re-exported). The availability of data on international trade of parts and components and its comparability between countries allows conducting an analysis of expansion motives of international production fragmentation, but the drawback of the methods is strong aggregation of categories of goods classification. Input-output tables, despite an array of methodical issues, are the most preferable source of data for studying the processes of production fragmentation that allows for industrial analysis, even if the tables are available for certain countries only on comparative basis and are not updated regularly. The article shows example of new improved sources of data (complex inter-country input-output tables, trade in value added), which allow softening the issues of methods based on national input-output tables

Keywords: international production fragmentation; revealed comparative advantage; RCA; vertical specialization; vertical specialization index; value added (search for similar items in EconPapers)
JEL-codes: C18 D57 F14 O24 (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:far:spaeco:y:2018:i:2:p:154-169

DOI: 10.14530/se.2018.2.154-169

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