Trade Liberalization in APEC and Global Value Chain Participation: What Can Value Added Indicators Tell?

Dorothee Flaig () and Jared Greenville ()
Additional contact information
Dorothee Flaig: Hohenheim University, Postal: International Agricultural Trade and Food Security, Hohenheim University, 70593 Stuttgart, Germany.
Jared Greenville: Australian Bureau of Agricultural and Resource Economics and Sciences, Postal: ABARES - Australian Bureau of Agricultural and Resource Economics and Sciences,, Department of Agriculture, Water and the Environment, GPO Box 858, Canberra City ACT 2601, Australia.

Journal of Economic Integration, 2021, vol. 36, issue 2, 308-338

Abstract: Global value chains (GVCs) a re an increasingly important driver of world t rade, and they are relevant in analyzing border policies and trade agreements. Combining methods of value added decomposition and a computable general equilibrium model, we show how tariff liberalization in APEC impacts on measures of integration. The trade agreement increases GVC integration worldwide irrespective of membership. The effects differ by type of integration, namely, forward or backward, depending on the source of intermediate inputs, the membership of countries up- and downstream the supply chain, and the border protection in the base. The analysis reveals some limitations of the presented integration measures in a dynamic context. First, value added incorporates income related to policy measures, and decreasing integration can reflect a lower tax burden and a more efficient network. Second, changes do not allow interpreting the size of effects of underlying variables, and similar changes can result from various underlying developments.

Keywords: GVCs; Value added indicators; trade agreement; APEC (search for similar items in EconPapers)
JEL-codes: C68 F13 F15 O53 (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.e-jei.org Full text (application/pdf)

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:ris:integr:0829

Access Statistics for this article

Journal of Economic Integration is currently edited by Seongeun Kim

More articles in Journal of Economic Integration from Center for Economic Integration, Sejong University Contact information at EDIRC.
Bibliographic data for series maintained by Yunhoe Kim ().