Decomposition of Value-Added in Gross Exports:Unresolved Issues and Possible Solutions

Sébastien Miroudot and Ming Ye

MPRA Paper from University Library of Munich, Germany

Abstract: To better understand trade in the context of global value chains, it is important to have a full and explicit decomposition of value-added in gross exports. While the decomposition proposed by Koopman, Wang and Wei (2014) is a first step in this direction, there are still three outstanding issues that need to be further addressed: (1) the nature of double counting in gross exports; (2) the calculation of the foreign value-added net of any double counting; and (3) the decomposition of gross exports at the industry level (the industry where exports take place). In this paper, we propose a new accounting framework that addresses these different issues and clarifies the definition of exports in inter-country input-output (ICIO) tables. It contributes to the literature: (i) by refining the definition of double-counted value-added in gross exports; (ii) by providing new expressions for the foreign value-added and double-counted terms; and (iii) by indicating how the new framework can be used to decompose exports at the industry level.

Keywords: Trade accounting; input-output table; Value-added decomposition; Global value chains (search for similar items in EconPapers)
JEL-codes: E01 E16 F14 F23 L14 (search for similar items in EconPapers)
Date: 2017-12-12
New Economics Papers: this item is included in nep-acc and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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