The Value-added Structure of Gross Exports and Global Production Network

Robert Koopman, Zhi Wang () and Shang-Jin Wei

No 332182, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: This paper first refines a methodology in KPWW (2011) that completely decomposes a country’s gross exports into its value-added components. By identifying which parts of such value-added are “double counted,” it bridges official trade statistics and national accounts, making the standard measure of trade consistent with SNA standards. We implement the decomposition on a database of global production and trade covering 62 countries/regions and 41 industries from version 8 of the Global Trade Analysis Project (GTAP) database for 2007 with additional processing trade information from China and Mexico. We recompute the RCA index at the country-sector level for all the countries and sectors in our database using domestic content in exports and compare them with RCA index based on traditional trade statistics.

Keywords: International Relations/Trade; Production Economics (search for similar items in EconPapers)
Pages: 43
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:ags:pugtwp:332182

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