The great collapse in value added trade

Arne Nagengast and Robert Stehrer

No 47/2015, Discussion Papers from Deutsche Bundesbank

Abstract: This paper studies the great collapse in value added trade using a structural decomposition analysis. We show that changes in vertical specialisation accounted for almost half of the great trade collapse, while the previous literature on gross trade has mainly focused on final expenditure, inventory adjustment and adverse credit supply conditions. The decline in international production sharing during the crisis may partially account for the observed decrease in global trade elasticities in recent years. Second, we find that the drop in the overall level of demand accounted for roughly a quarter of the decline in value added exports while just under one third was due to compositional changes in final demand. Finally, we demonstrate that the dichotomy between services and manufacturing sectors observed in gross exports during the great trade collapse is not apparent in value added trade data.

Keywords: Great trade collapse; Vertical specialisation; Trade in value added; Input-output tables; Structural decomposition analysis (search for similar items in EconPapers)
JEL-codes: C67 F1 F2 R15 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-hme and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/126565/1/847121364.pdf (application/pdf)

Related works:
Journal Article: The Great Collapse in Value Added Trade (2016)
Working Paper: The great collapse in value added trade (2015)
Working Paper: The Great Collapse in Value Added Trade (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:bubdps:472015

Access Statistics for this paper

More papers in Discussion Papers from Deutsche Bundesbank Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().