Global Value Chains and Trade Elasticities

Byron Gangnes (), Alyson Ma and Ari Van Assche ()
Additional contact information
Alyson Ma: University of San Diego
Ari Van Assche: HEC Montr�al, Department of International Business

No 2014-2, Working Papers from University of Hawaii Economic Research Organization, University of Hawaii at Manoa

Abstract: Previous studies have argued that global value chains (GVCs) have increased the sensitivity of trade to external business cycle 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)
JEL-codes: F1 F4 (search for similar items in EconPapers)
Pages: 10 pages
Date: 2014-02
New Economics Papers: this item is included in nep-int, nep-opm and nep-sog
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

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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:hae:wpaper:2014-2

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