Bilateral Equivalence between Trade in Value Added and Value Added Content of Trade

Masaaki Kuboniwa ()

No 601, Discussion Paper Series from Institute of Economic Research, Hitotsubashi University

Abstract: This paper demonstrates that the bilateral equivalence between trade in value added (TiVA) and value added content of trade. TiVA, based on value added exports, which is proposed by Johnson-Noguera and OECD-WTO, measures origin country’s value added exports induced by each destination country’s final demand, excluding intermediates, for the world. Value added content of trade or “value added in trade (VAiT),” which is proposed by Trefler and followed by Stehrer, measures value added induced by appropriately arranged gross trade, including intermediates. At a glance, these two measures may look quite different. This paper shows that in the world with two countries and many countries these two measures of TiVA and value added content of trade are bilaterally equivalent.

Keywords: trade in value added; value added content of trade; gross trade; input-output (search for similar items in EconPapers)
JEL-codes: F1 F15 F19 R15 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2014-02
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:hit:hituec:601

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