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 Montréal, Department of International Business

No 201401, Working Papers from University of Hawaii at Manoa, Department of Economics

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: 9 pages
Date: 2014-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
http://www.economics.hawaii.edu/research/workingpapers/WP_14-1.pdf First version, 2014 (application/pdf)

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)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hai:wpaper:201401

Ordering information: This working paper can be ordered from
http://www.economics ... esearch/working.html

Access Statistics for this paper

More papers in Working Papers from University of Hawaii at Manoa, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Web Technician ().