Value-added share and elasticity of trade to barriers

Xuebing Yang

Applied Economics Letters, 2022, vol. 29, issue 17, 1599-1604

Abstract: Trade flows, either measured as gross trade or flows of value-added, tend to be less sensitive to trade barriers in industries that feature a greater share of value-added in its product. Gross trade is, in general, more sensitive to trade barriers than the trade in value-added does. The differences between the elasticities of gross trade and value-added trade with respect to distance tend to be smaller for industries with a higher share of value-added in its product.

Date: 2022
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DOI: 10.1080/13504851.2021.1948960

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