Measuring Bilateral Exports of Value Added: A Unified Framework

Bart Los and Marcel Timmer

Economic Statistics Centre of Excellence (ESCoE) Discussion Papers from Economic Statistics Centre of Excellence (ESCoE)

Abstract: We provide a unified framework for measuring bilateral exports of value added. We outline a general methodology that encompasses the measures introduced by Johnson and Noguera (2012) (value added consumed abroad) and Los et al. (2016) (value added in exports), to which we refer as VAX-C and VAX-D, respectively. In addition we suggest a novel third measure, VAX-P, which indicates the value added used abroad in the final stage of production. We show that they can all be derived with the method of hypothetical extraction in a general input-output model. This is helpful in comparing and contrasting their characteristics. As a corollary, we show that for VAX-C and VAX-P the sum of bilateral measures is equal to the corresponding aggregate measure, but that this is generally not true for VAX-D. We illustrate all measures with empirical examples computed on the basis of the World Input-Output Database. These indicators can found at www.wiod.org.

Keywords: Trade; Global Value Chains; Hypothetical extractions; Input-Output model (search for similar items in EconPapers)
JEL-codes: F1 F6 (search for similar items in EconPapers)
Date: 2019-01
New Economics Papers: this item is included in nep-int
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Related works:
Chapter: Measuring Bilateral Exports of Value Added: A Unified Framework (2020)
Working Paper: Measuring Bilateral Exports of Value Added: A Unified Framework (2018)
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