icio: Economic analysis with intercountry input–output tables

2021 ◽  
Vol 21 (3) ◽  
pp. 708-755
Author(s):  
Federico Belotti ◽  
Alessandro Borin ◽  
Michele Mancini
Keyword(s):  
Policy Research ◽  
Value Added ◽  
Global Value Chains ◽  
Trade Flows ◽  
Value Chains ◽  
World Bank Group ◽  
Input Output ◽  
Working Paper ◽  
Level Of Aggregation ◽  
Bank Group

Several new statistical tools and analytical frameworks have been recently developed to measure countries’ and sectors’ involvement in global value chains. Such a wealth of methodologies reflects the fact that different empirical questions call for distinct accounting methods and different levels of aggregation of trade flows. In this article, we describe icio, a new command for the computation of the most appropriate measures of trade in value added as well as participation in global value chains. icio follows the conceptual framework proposed by Borin and Mancini (2019, Policy Research Working Paper WPS 8804; WDR 2020 Background Paper, World Bank Group), which in turn extends, refines, and reconciles the other main contributions in this strand of the literature. icio is flexible enough to work with any intercountry input–output table and with any level of aggregation of trade flows.

Russia–ASEAN: Trade and Global Value Chains

2015 ◽  
pp. 25-39
Author(s):  
K. Muradov
Keyword(s):  
South Korea ◽  
Value Chain ◽  
Bilateral Trade ◽  
Value Added ◽  
Global Value Chains ◽  
Trade Flows ◽  
Value Chains ◽  
Trade Data ◽  
Traded Goods ◽  
Trade In Value Added

Traditional trade statistics that originate in customs records is inadequate to measure the complex interdependencies in today’s globalized economy, or what is known as the global value chains. The article focuses on Russia–ASEAN trade. The author applies innovative methods of measuring trade in value added terms in order to capture the unobserved bilateral linkages behind the officially recorded trade flows. First, customs and balance of payments sources of bilateral trade data are briefly reviewed. For user, there are at least two inherent problems in those data: the inconsistencies in “mirror” trade flows and the attribution of the origin of a traded product wholly to the exporting country. This results in large discrepancies between Russian and ASEAN “mirror” trade data and, arguably, their low importance as each other’s trade partners. Next, the author explores new data from inter-country input-output tables that necessarily reconcile bilateral differences and offer greater detail about the national and sectoral origin or destination of traded goods and services. Relevant data are derived from the OECD-WTO TiVA database and are rearranged to obtain various estimates of Russia–ASEAN trade in value added in 2009. The main finding is that sizable amount of the value added of Russian origin is embodied in third countries’ exports to ASEAN members and ASEAN members’ exports to third countries. As a result, the cumulative flow of Russia’s value added to ASEAN members is estimated to be 62% larger than the direct gross exports, whereas for China and South Korea it is, respectively, 21% and 23% smaller. The indirect, unobserved value added flows can be largely explained by the use of Russian energy resources, chemicals and metals as imported inputs in third countries (China, South Korea) and ASEAN members’ own production. The contribution of these inputs is then accumulated along the value chain. Finally, the most important sectoral value chains are visualized for readers’ convenience. So far, it’s apparent that Russia is linked to ASEAN countries through intricate production networks and indirectly contributes to their trade with third countries.

scholarly journals Measuring Global Value Chains

2018 ◽  
Vol 10 (1) ◽  
pp. 207-236 ◽  
Author(s):  
Robert C. Johnson
Keyword(s):  
Multinational Firms ◽  
Bilateral Trade ◽  
Value Added ◽  
Global Value Chains ◽  
Value Chains ◽  
Production Networks ◽  
Input Output ◽  
Firm Level ◽  
Level Data ◽  
Production Stages

Recent decades have seen the emergence of global value chains (GVCs), in which production stages for individual goods are broken apart and scattered across countries. Stimulated by these developments, there has been rapid progress in data and methods for measuring GVC linkages. The macro approach to measuring GVCs connects national input–output tables across borders by using bilateral trade data to construct global input–output tables. These tables have been applied to measure trade in value added, the length of and location of producers in GVCs, and price linkages across countries. The micro approach uses firm-level data to document firms’ input sourcing decisions, how import and export participation are linked, and how multinational firms organize their production networks. In this review, I evaluate progress in these two approaches, highlighting points of contact between them and areas that demand further work. I argue that further convergence between these approaches can strengthen both, yielding a more complete empirical portrait of GVCs.

PRODUCTION SHARING, DEMAND SPILLOVERS AND CO2 EMISSIONS: THE CASE OF CHINESE REGIONS IN GLOBAL VALUE CHAINS

2018 ◽  
Vol 63 (02) ◽  
pp. 275-293 ◽  
Author(s):  
JIANSUO PEI ◽  
BO MENG ◽  
FEI WANG ◽  
JINJUN XUE ◽  
ZHONGXIU ZHAO
Keyword(s):  
International Trade ◽  
Policy Instruments ◽  
Value Added ◽  
Global Value Chains ◽  
Value Chains ◽  
Input Output ◽  
National Academy Of Sciences ◽  
Trade Patterns ◽  
Production Sharing ◽  
Production Pattern

Recent trade literature highlights production sharing among economies [Johnson, R and G Noguera (2012). Accounting for intermediates: Production sharing and trade in value added. Journal of International Economics, 86(2), 224–236), and some studies report that 20–25% of CO2 emissions can be attributed to international trade [Peters, G, J Minx, C Weber and O Edenhofer (2011). Growth in emission transfers via international trade from 1990 to 2008. Proceedings the National Academy of Sciences USA, 108(21), 8903–8908.]. However, the mechanism explaining how and to what extent production sharing affects CO2 emissions remains unclear. This study, as an extension of [Meng, B, J Xue, K Feng, D Guan and X Fu (2013a). China’s interregional spillover of carbon emissions and domestic supply chains. Energy Policy, 61, 1305–1321.], adopts the perspective of demand spillovers to provide new insights regarding the position of Chinese domestic-regions’ production in Global Value Chains (GVCs) and their associated CO2 emissions. To this end, we employed a new type of World Input-Output Database (WIOD) in which China’s domestic interregional input–output table for 2007 is endogenously embedded. The pattern of China’s regional demand spillovers across both domestic regions and countries is revealed by employing this new database. These results were then connected to endowments theory, which helps to make sense of the empirical results. It is found that China’s regions are located relatively upstream in GVCs, and had CO2 emissions in net exports, which were entirely predicted by the environmental extended Heckscher–Ohlin–Vanek (HOV) model. Our study points to micro policy instruments to combat climate change: for example, tax reform for energy inputs that helps to change the production pattern, which then has an impact on trade patterns and so forth.

scholarly journals The Characteristics of Regional Value Chains in the Sector of Chemicals and Pharmaceutical Products in the EU

Economies ◽  
2021 ◽  
Vol 9 (4) ◽  
pp. 167
Author(s):  
Ines Kersan-Škabić ◽  
Alen Belullo
Keyword(s):  
Public Health ◽  
Value Added ◽  
Pharmaceutical Products ◽  
Trade Flows ◽  
Value Chains ◽  
Input Output ◽  
Medical Products ◽  
Eu Member States ◽  
Fragmentation Of Production ◽  
The Eu

The COVID-19 pandemic has impacted trade flows, causing a trade drop in 2020 that was especially sensitive for pharmaceutical and medical products necessary to ensure public health. The production of pharmaceutical products is dispersed in a framework of global value chains. This study aimed to provide a detailed analysis of the EU situation in the sector of production of chemical and pharmaceutical products, to discover the fragmentation of production chains within the EU as well as globally. International inter-country input–output tables were employed to disaggregate the value-added created in EU member states. The GVC and RVC participation indexes, backward and forward participation, length of sourcing, and selling value chains were calculated and compared with the main global hubs.

scholarly journals Currency Unions and Global Value Chains: The Impact of the Euro on the Italian Value Added Exports

2021 ◽  
Author(s):  
Giovanni Cerulli ◽  
Silvia Nenci ◽  
Luca Salvatici ◽  
Antonio Zinilli
Keyword(s):  
Value Chain ◽  
Control Method ◽  
Value Added ◽  
Global Value Chains ◽  
Trade Flows ◽  
Value Chains ◽  
Synthetic Control ◽  
Currency Unions ◽  
Trading Partners ◽  
The Impact

AbstractMany estimates of the effect of the common currency on trade have been made, although a clear answer has yet to be given. This work analyses the trade effect of the euro by providing a twofold contribution. First, one of the main stylised facts that has emerged from the recent literature is that trade flows in gross terms can differ substantially from those measured in value added terms. Accordingly, we focus on the structure of global value chains rather than conventional gross trade. To this aim, we provide an estimate of the value added trade flows that would have existed between Italy and its main trading partners if Italy had not joined the monetary union and show how, and to what extent, international production sharing has been affected. Second, we use a methodology that is different from traditional, parametric ones. Specifically, we apply the synthetic control method to construct appropriate counterfactuals and estimate the causal impact of the euro. Our empirical analysis provides a relevant case for considering value added in addition to gross trade since it shows that the euro facilitated the forward integration of Italian exports, whereas it slowed down backward integration. Overall, these results suggest that the euro had an impact on Italian global value chain participation by altering value added flows across member as well as non-member states, with great heterogeneity in the results across value added trade components and sectors.

scholarly journals Calculating Trade in Value Added

2017 ◽  
Vol 17 (178) ◽  
Author(s):  
Aqib Aslam ◽  
Natalija Novta ◽  
Fabiano Rodrigues-Bastos
Keyword(s):  
Value Added ◽  
Basic Structure ◽  
Global Value Chains ◽  
Value Chains ◽  
Input Output ◽  
Output Table ◽  
The Matrix ◽  
Policy Work ◽  
Backward Linkages ◽  
Trade In Value Added

This paper sets out the key concepts necessary to calculate trade in value added using input-output tables. We explain the basic structure of an input-output table and the matrix algebra behind the computation of trade in value added statistics. Specifically, we compute measures of domestic value-added, foreign value added, and forward and backward linkages, as well as measures of both a country’s participation and position in global value chains. We work in detail with an example of a global input-output table for 3 countries each with 4 sectors, provided by the Eora Multi-Region Input-Output (MRIO) database. The aim is to provide an introduction to the analysis of global value chains for use in policy work. An accompanying suite of Matlab codes are provided that can be used with the full set of Eora MRIO tables.

Assessment of the positions of the exporting countries of agri-food products on the world market according to their role in global value chains

2021 ◽  
pp. 8-14
Author(s):  
Elena Yu. Frolova ◽  
Keyword(s):  
Raw Materials ◽  
Action Plan ◽  
Value Added ◽  
Global Value Chains ◽  
World Market ◽  
Point Of View ◽  
Value Chains ◽  
Agricultural Exports ◽  
Export Policy ◽  
The World

The place in the rankings of agricultural exporting countries in world trade is estimated in terms of the volume of imports and exports of raw materials and food. However, to assess the efficiency of agricultural exports, it is important to analyze the value added of exported goods produced in the country. The position of the exporting country in global value chains is derived from the type of agricultural production, which in turn depends on the level of development of the national economy, the availability and breadth of use of modern high technologies. The article examines the concept of the development of world agriculture from the point of view of the formation of global value chains, set out in the report of the UN World Food Organization [1] in comparison with the political decisions of such countries as India and the People’s Republic of China in the development of agricultural and food exports. The paper analyzes the risks associated with the consolidation of developing countries as suppliers of agricultural raw materials, as well as the conditions and action plan that allow the country-exporter of agricultural raw materials to move to higher levels in the global value chains on the world market. This experience should be considered to make comprehensive and effective decisions on the formation of the export policy of agricultural products and food of the Russian Federation, considering the food security of the country.

scholarly journals Participation of Kazakhstan Pharmaceutical Companies in Global Value Chains Authors

2021 ◽  
Vol 17 (2) ◽  
pp. 473-485
Author(s):  
Elena D. Frolova ◽  
Zulparuza A. Abdurahkmanova ◽  
Alexander A. Ishukov
Keyword(s):  
Pharmaceutical Industry ◽  
Generic Drugs ◽  
Value Added ◽  
Global Value Chains ◽  
Value Chains ◽  
Pharmaceutical Companies ◽  
Enterprise Level ◽  
Micro Level ◽  
The Republic ◽  
National Economies

Growing interest of national economies in global value chains (GVCs) and the lack of micro-level research brought us to study the integration of countries in GVCs at the enterprise level (using the example of the pharmaceutical industry). We examine the situation in the Republic of Kazakhstan that is beginning to integrate into GVCs. Results of a questionnaire survey of the country’s pharmaceutical companies are considered along with public statistics. We developed a methodology to analyse the participation of a national entity in GVCs at the micro-level (including the enterprise participation in GVCs) and assess the performance of Kazakh pharmaceutical companies. The research is based on export and import data. A hypothesis on the participation of national pharmaceutical enterprises was partially confirmed: several surveyed companies participate in generic drugs GVCs at the production level, thus the value added is low. Features of pioneering entry into pharmaceutical global value chains for countries lacking such integration experience were demonstrated on a specific example. The obtained results can be used by countries starting the process of integration into pharmaceutical GVCs, as well as by Kazakhstan when developing the pharmaceutical industry.

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