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Measuring the Upstreamness of Production and Trade Flows

Pol Antras, Davin Chor (), Thibault Fally () and Russell Hillberry

No 17819, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We propose two distinct approaches to the measurement of industry upstreamness (or average distance from final use) and show that they yield an equivalent measure. Furthermore, we provide two additional interpretations of this measure, one of them related to the concept of forward linkages in Input-Output analysis. On the empirical side, we construct this measure for 426 industries using the 2002 US Input-Output Tables. We also verify the stability of upstreamness across countries in the OECD STAN database, albeit with a more aggregated industry classification. Finally, we present an application that explores the determinants of the average upstreamness of exports at the country level using trade flows for 2002.

JEL-codes: F10 F14 L16 L23 O14 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-hme and nep-int
Date: 2012-02
Note: IO ITI
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Published as Pol Antras & Davin Chor & Thibault Fally & Russell Hillberry, 2012. "Measuring the Upstreamness of Production and Trade Flows," American Economic Review, American Economic Association, vol. 102(3), pages 412-16, May.

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Journal Article: Measuring the Upstreamness of Production and Trade Flows (2012) Downloads
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