Trade costs and borders in global value chains

Kirill Muradov ()
Additional contact information
Kirill Muradov: Centre for Information and Analysis of Foreign Trade

Review of World Economics (Weltwirtschaftliches Archiv), 2017, vol. 153, issue 3, No 3, 487-509

Abstract: Abstract The effects of trade cost magnification due to multiple border crossings along global value chains are known from the scholarly literature and the reports of international organizations. However, evidence supporting or challenging this view has been limited. This article proposes two new measures of cumulative resistance to exports in global value chains and a measure of the average number of border crossings that build on the inter-country input–output framework. Data from the World Input–Output Database are supplemented with estimates derived from the UN Comtrade and UN TRAINS, allowing for an experimental computation of the accumulated import tariffs faced by exporters in 2001, 2005 and 2010. The average number of border crossings exhibits a slow upward trend, but the accumulated tariffs decline quickly. Trade liberalization therefore neutralizes the risk of higher cumulative protection associated with the international fragmentation of production. The benefits of liberalization or facilitation of trade within free trade agreements accrue to non-members, and this effect can now be estimated.

Keywords: Global value chains; Trade costs; Cumulative tariffs; Border crossings; Input–output tables (search for similar items in EconPapers)
JEL-codes: D57 F13 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://link.springer.com/10.1007/s10290-017-0280-6 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:weltar:v:153:y:2017:i:3:d:10.1007_s10290-017-0280-6

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/10290/PS2

DOI: 10.1007/s10290-017-0280-6

Access Statistics for this article

Review of World Economics (Weltwirtschaftliches Archiv) is currently edited by Paul Bergin, Holger Görg, Cédric Tille and Gerald Willmann

More articles in Review of World Economics (Weltwirtschaftliches Archiv) from Springer, Institut für Weltwirtschaft (Kiel Institute for the World Economy) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().