Global Value Chains and Trade Elasticities

Byron Gangnes (), Alyson C. Ma and Ari Van Assche

CIRANO Working Papers from CIRANO

Abstract: Previous studies have argued that global value chains (GVCs) have increased the sensitivity of trade to foreign income shocks. This may occur either because GVC trade is concentrated in durable goods industries, which are known to have high income elasticities (a composition effect), or because, within industries, GVC trade has a higher income elasticity than regular trade (a supply chain effect). Using Chinese trade data across customs regimes and industries during the period 1995-2009, we find evidence for the former, but not the latter.

Keywords: global value chains; trade elasticities; supply chain effect; composition effect (search for similar items in EconPapers)
Date: 2014-06-01
New Economics Papers: this item is included in nep-int
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Citations: View citations in EconPapers (13)

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Related works:
Journal Article: Global value chains and trade elasticities (2014)
Working Paper: Global Value Chains and Trade Elasticities (2014)
Working Paper: Global Value Chains and Trade Elasticities (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:cir:cirwor:2014s-31

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