Differentiation of countries in terms of the shore of domestic value added in exports

2019 ◽  
Vol 64 (7) ◽  
pp. 32-47
Author(s):  
Wirginia Doryń
Keyword(s):  
Value Added ◽  
Trade Flows ◽  
Added Value ◽  
Value Chains ◽  
Manufacturing Processes ◽  
Advanced Manufacturing ◽  
South American ◽  
Knowledge Intensive ◽  
European Economies ◽  
Trade In Value Added

The emergence of global value chains entails that measuring the benefits of foreign trade cannot be limited to measuring trade flows nor their structure. The article aims atpresentingthe results of the time series cluster analysis of the share of the domestic value added of gross exports. It isbased ondata from the latest TiVA database (Trade in Value Added) from December 2018,covering the period 2005–2016. Four clusters of countries were identified. The cluster containing countries with the highest values of the national share of added value in exports included economies rich in natural resources (i.a., Saudi Arabia, Russia, South American countries), with a large internal market and involved in technologically advanced manufacturing processes/knowledge intensive services (including USA, Japan, Great Britain). A group with the lowest share of the domestic value added in exports (not exceeding 50%) contained small and open European economies of Luxembourg and Malta.

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.

A value-added analysis of trade in Taiwan and Korea’s ICT industries

2016 ◽  
Vol 20 (1) ◽  
pp. 47-73
Author(s):  
Hsing-Chun Lin ◽  
Shih-Hsun Hsu ◽  
Ruey-Wan Liou ◽  
Ching-Cheng Chang
Keyword(s):  
Value Added ◽  
Information And Communications Technology ◽  
Value Chains ◽  
Input Output ◽  
Content Type ◽  
Cost Structures ◽  
A Value ◽  
The World ◽  
Ict Industry ◽  
Trade In Value Added

Purpose – The purpose of this paper is to extricate value-added exports in information and communications technology (ICT) industry earned by Taiwan and Korea. Additionally, the authors decompose Taiwan and Korea’s gross exports into various meaningful components. Design/methodology/approach – The authors use the inter-country input-output (ICIO) table which endows with cost structures of industries as well as trade information, facilitating in keeping track of the flow of products and value-added. The ICIO table used in this paper comes from the World Input-Output Database. The authors also use the way Wang et al. (2013) decomposed the intermediate goods exports into various components to provide further insights. Findings – The empirical results indicate that Taiwan and Korea’s ICT export to the world shrink by 47.8 and 40.9 percent when the trades are measured in value-added terms. Taiwan and Korea’s ICT export will also decrease by 75.1 and 57.8 percent. From the viewpoint of value added in trade, the share of value added embodied in Taiwan and Korea’s gross ICT exports continued to decrease and reached 24.9 and 42.2 percent in 2011, while the components of pure double counted terms kept growing in recent years. Originality/value – With global value chains flourishing in recent years, conventional trade statistics not only fails to highlight the vertical specialization among different countries, but also distorts the measurement of a country’s competitiveness. This paper extricates value-added exports in ICT industry earned by Taiwan and Korea and bring into focus the importance of trade in value added.

scholarly journals AFRICAN ECONOMIC PARADOX: INDUSTRIALIZATION CREATING JOBS AND ADDED VALUE OR ACTIVE PARTICIPATION IN GLOBAL VALUE CHAINS: WHAT SOLUTIONS TO DEVELOP FOR THE LESS ADVANCED AND LANDLOCKED COUNTRIES LIKE BURKINA FASO?

2020 ◽  
Vol 2 (1) ◽  
pp. 1-20
Author(s):  
Nicolas Carbonell ◽  
Dr. Théophile Bindeouè Nassè ◽  
Dr. Denis Akouwerabou
Keyword(s):  
United Nations ◽  
Burkina Faso ◽  
Industrial Development ◽  
Value Added ◽  
Global Value Chains ◽  
Sub Saharan Africa ◽  
Added Value ◽  
Value Chains ◽  
African Countries ◽  
The United Nations

The United Nations Economic Commission for Africa (2016) calls for resources for the implementation of the Action Plan for Accelerated Industrial Development in Africa, and states that: “Industrialization is essential for African countries as a means of increasing income, creating jobs, developing value-added activities and diversifying economies”. The United Nations Development Program (UNDP), the African Development Bank (AFDB), and the Organization for Cooperation and Economics Development (OCED, 2014, p. 16) explain the benefits to African countries’ participation in Global Value Chains (GVC) to industrialize without having to implement all stages of the chain. They add that the acquisition of new production capacities can allow countries and companies to move upmarket, which is to say to increase their share of value added in a GVC. But the opposite is the case, at least in some countries like Burkina Faso. We are witnessing a “specialization of primary products (cotton and non-monetary gold), to the detriment of manufacturing industry with high potential for multiplier effects on local economies” National Plan for Economic and Social Development of Burkina Faso (PNDES, 2017, p.12). Cusolito and al. (2016) mention that overcoming a series of obstacles (such as bad policies and governance, insufficient technology and skills) is the way to actively participate in GVCs. Yet OPEN it is these same obstacles that have always prevented the industrialization of Sub-Saharan Africa (excluding South Africa). The results show that the Global Value Chains (GVC) contribute to the creation of added value in developing countries what has an effect on industrialization

Manufacturing and value-added dynamics in global value chains: the case of Italy

2020 ◽  
Vol 30 (4) ◽  
pp. 457-470
Author(s):  
Chiara Burlina ◽  
Eleonora Di Maria
Keyword(s):  
Design Methodology ◽  
Value Added ◽  
Global Value Chains ◽  
Value Chains ◽  
Content Type ◽  
New Methods ◽  
Trade In Value Added ◽  
Revealed Comparative Advantage Index ◽  
Over Time ◽  
Made In

Purpose This paper aims to provide a snapshot of various countries’ contributions to value produced along global value chains (GVCs). It focusses on manufacturing activities and their evolution over time, in the context of GVC regionalisation. Design/methodology/approach The Trade in Value Added (TiVA) and World Integrated Trade Solution databases for the period of 2005-2015 were used to explore the case of Italy and its industries’ specialisations (Made in Italy): fashion, furniture, automotive and machinery traditionally organised into clusters. Various analyses were used to show the dynamics of gross import–export and imported–exported value-added. Moreover, the revealed comparative advantage index was computed to test whether the Made in Italy sector remains a source of competitive advantage for Italy within GVCs. Findings The results highlight how the geography of value-added is changing over time, with growing importance placed on the countries close to Italy and with a different pace according to each considered GVC. Originality/value The paper applied new methods to compare trade and analyse value-added dynamics through a recent database released by the Organization for Economic Co-operation and Development within the TiVA initiative that is useful for scholars and policymakers.

scholarly journals GLOBALIZATION AND TRADE FLOWS: WHAT YOU SEE IS NOT WHAT YOU GET!

2012 ◽  
Vol 03 (03) ◽  
pp. 1250019 ◽  
Author(s):  
ANDREAS MAURER ◽  
CHRISTOPHE DEGAIN
Keyword(s):  
Global Financial Crisis ◽  
Value Added ◽  
Value Chains ◽  
Globalized Economy ◽  
Fragmentation Of Production ◽  
Merchandise Trade ◽  
The Global Financial Crisis ◽  
New Statistics ◽  
The Impact ◽  
Trade In Value Added

The trade collapse that followed the global financial crisis of 2008–2009 has led to a renewed interest in measurement issues affecting international merchandise trade statistics in the new globalized economy. The international fragmentation of industrial production blurs the concept of country of origin and calls for the production of new statistics on the domestic content of exports, with a view of estimating trade in value added. In 2010, the international statistical community revised the concepts and definitions on both international merchandise trade and trade in services statistics. This paper discusses the various issues related to the concepts of "goods for processing" and "intra-firm trade" in trade statistics, and provides an overview of the method of analyzing the impact of the fragmentation of production in international value chains.

scholarly journals The evolving geography of production hubs and regional value chains across East Asia: Trade in value-added

2015 ◽  
Vol 50 (3) ◽  
pp. 404-416 ◽  
Author(s):  
Gabriele Suder ◽  
Peter W. Liesch ◽  
Satoshi Inomata ◽  
Irina Mihailova ◽  
Bo Meng
Keyword(s):  
East Asia ◽  
Value Added ◽  
Value Chains ◽  
Trade In Value Added

Global Value Chains and East Asian Trade in Value-Added

2015 ◽  
Vol 14 (3) ◽  
pp. 129-144 ◽  
Author(s):  
Nakgyoon Choi
Keyword(s):  
East Asia ◽  
East Asian ◽  
Free Trade Agreements ◽  
Value Added ◽  
Global Value Chains ◽  
Value Chains ◽  
Labor Ratio ◽  
Opposite Trend ◽  
Capital Labor Ratio ◽  
Trade In Value Added

The rise of global value chains (GVCs) has changed the patterns of trade in East Asia. This paper aims to analyze GVCs since the mid 1990s and to investigate the determinants of East Asian trade in value-added. At the world level, export (measured in value-added) is increasingly sensitive to the capital–labor ratio and high-skilled labor productivity. In East Asia, however, the opposite trend is seen. It is also found that free trade agreements do not promote export in East Asia, only export in intermediate goods.

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