Trade in value added: do we need new measures of competitiveness?
Maria Silgoner,
Paul Ramskogler and
Kirsten Lommatzsch ()
No 1936, Working Paper Series from European Central Bank
Abstract:
It has been argued that the increasing importance of global value chains necessitates a modification of conventional competitiveness measures. We compile a broad dataset including value added trade, gross exports and conventional and value added based real exchange rates. To sharply focus on external competitiveness, a new price competitiveness indicator is introduced, the TWULC (Trade Weighted Unit Labour Cost indicator). It weights sector-specific cost trends according to sector shares in exports. Econometric tests for a panel of 38 countries show that the focus on value added trade generally improves the explanatory power of export equations. Value added exports JEL Classification: F14, J30
Keywords: competitiveness; external trade; labour costs (search for similar items in EconPapers)
Date: 2016-07
New Economics Papers: this item is included in nep-int, nep-lma, nep-opm and nep-tid
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Citations: View citations in EconPapers (6)
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Working Paper: Trade in value added: Do we need new measures of competitiveness? (2016) 
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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbwps:20161936
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