The Gravity Model, Global Value Chain and the Brazilian States

Joaquim Guilhoto, Jean Siroen and Ayçıl Yücer

Working Papers from HAL

Abstract: The WTO and the OECD along with many other organizations, suggest trade in value-added is a "better" measuring system than gross value in order to better understand the impact of trade on employment, growth and production . When it comes to the "domestic" value chain and internalspecializations, internal trade statistics are rarely available. In this work we use a gravity model basedon the estimation of exports of the Brazilian states, considered as trade entities, both in traditionalterms of gross value and in terms of value-added. Our method is based on an Input-Output table for 2008. The results of the bilateral gravity model for the Brazilian states' exports show that the maindeterminants (GDP, distance etc.) are fairly similar when exports are estimated in gross or value-added terms.

Keywords: Input-Output Analysis; Commerce international; Global supply-chain; Vertical Specialization; Spécialisation verticale; Brésil; chaîne globale de valeur; Intranational trade; Brazil; analyse Input-Output (search for similar items in EconPapers)
Date: 2017-03-10
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Working Paper: The gravity model, global value chain and the brazilian states (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:hal-01486978

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