 The Economic Value of Nations (for Others)Hans Gersbach, Paul Maxence Maunoir and Kieran James Walsh No 20855, CEPR Discussion Papers from Centre for Economic Policy Research Abstract: What is the economic value of a country to others through trade, relative to the gains it secures for itself? To answer this question, we introduce, characterize, and compute the trade benefit ratio (TBR) – a new metric capturing the ratio of value created for trading partners to that created domestically. TBR also reflects a country’s capacity to impose harm on others relative to self-harm, positioning it as a potential measure of geopolitical leverage. Extending a nonlinear quantitative general equilibrium model spanning 34 countries/regions and 38 industries, we compute and rank TBRs for overall trade, manufacturing, and manufacturing plus services. In an all-sectors exercise, the highest-TBR countries are the US, the UK, China, and Indonesia, whereas Japan and South Korea lie at the bottom. In a manufacturing-and-services scenario, the US TBR even exceeds one. We extend the framework to coalitions, demonstrating its relevance in a “Cold War 2.0†scenario of Western-China bloc decoupling. Keywords: global trade networks; Geoeconomics; value of countries (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:20855 Ordering information: This working paper can be ordered from Access Statistics for this paper More papers in CEPR Discussion Papers from Centre for Economic Policy Research 33 Great Sutton Street, London EC1V 0DX, UK. |
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