Identifying hubs and spokes in global supply chains with redirected trade in value added

Arjan Lejour, Hugo Rojas-Romagosa and Paul Veenendaal

No 332177, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: The increasing importance of global supply chains has prompted the use of analytical tools based on trade in value added, because traditional trade measures (in gross value) cannot track the origin and destination of value added produced in different countries. This paper follows a recently created methodological framework for analyzing trade in value added, but extends it to identify the spokes and hubs in these global supply chains. In particular, we create indicators that measure the origin of value added which is redirected by hubs and the destinations of redirected value added. Using these indicators and the GTAP database for 2001, 2004 and 2007 we identify the importance of redirected value added and the hub and spoke relationships at the industry level.

Keywords: International Relations/Trade; International Development (search for similar items in EconPapers)
Pages: 31
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:ags:pugtwp:332177

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