Are global value chains receding? The jury is still out. Key findings from the analysis of deflated world trade in parts and components
Guillaume Gaulier (),
Aude Sztulman and
Working Papers from CEPII research center
In this article, we examine the dynamics of Global Value Chains (GVCs) since the 2000s. Did it show a marked expansion up to the Great Recession and did GVCs begin a downturn in the 2010s? To better understand the evolution of GVCs at the world level, we use very detailed trade data for 2000 to 2016, which distinguishes different production stages along the GVC. In particular, among intermediate goods, we focus on Parts and Components (P&C) rather than semi-finished products since the manufacture of P&C corresponds to activities more embedded in GVCs. We control, also, for the global business cycle and price effects using an original production stages deflator based on detailed bilateral trade unit-values. This new GVC indicator shows moderate growth over the study period with no trend reversal. In the electronics sector, where GVCs are particularly well-developed, we observe contrasting effects: the share in P&C trade for office machinery and computers has decreased, while it has increased in the case of telecommunications equipment, the flagship IT revolution industry. Also, counts of clients or suppliers by stages of production indicate higher and growing geographical diversity for P&C.
Keywords: Global Value Chains; Parts and Components – P&C; Trade in Volume; Electronics (search for similar items in EconPapers)
JEL-codes: F14 F15 L60 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:cii:cepidt:2019-01
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