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Clustering Value-Added Trade: Structural and Policy Dimensions

Hubert Escaith () and Hadrien Gaudin

MPRA Paper from University Library of Munich, Germany

Abstract: The paper uses exploratory data analysis to propose a typology of exporters according to the value-added content of their exports as well as other economic and trade policy characteristics. In the process, it defines clusters of countries according to the multi-dimensional criteria defined by value-added, economic and trade policy indicators. Results show that natural resources and services orientation are among the most determinant variables. The level of economic development remains a crucial determinant of the Trade in Value-Added profile, more than the sheer size of the economy. Pro-active value-chain up-grading strategies foster a higher foreign content in exports, compensating the lower domestic margin by higher volumes. Protectionist policies are not particularly successful in increasing higher share of domestic content, except in services exports; but in this case, volumes remain marginal.

Keywords: Trade in value-added; global value chains; trade policy; input-output analysis; effective protection rate; exploratory data analysis (search for similar items in EconPapers)
JEL-codes: D57 F13 F14 F15 F23 O19 O24 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cse and nep-int
Date: 2014-07-10
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