Estimating domestic content in exports when processing trade is pervasive

Koopman, Robert; Zhi, Wang; Wei, Shang‐Jin

doi:10.1016/j.jdeveco.2011.12.004

Cited by 401 publications

(326 citation statements)

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“…However, with the increasing fragmentation of production across borders and the increasing use of foreign inputs, this assumption can no longer be maintained. Against this background, Johnson and Noguera (2012) and Koopman et al (2012) proposed a new measure of the domestic value added content of exports. Also, Bems and Johnson (2012) argued that the conventional real effective exchange rate calculations should be replaced by an analysis based on value-added.…”

Section: Non-technical Summarymentioning

confidence: 99%

“…They also relate this surprising finding to the inability of gross exports statistics to capture the value added in internationally fragmented production. More recently, Koopman et al (2012) studied production in the export sector of China, which consists for a large part of assembly activities based on imported intermediates. They empirically showed that value added in these activities was much lower than suggested by the gross export values, but grew at a faster pace.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Fragmentation, Incomes, and Jobs: An Analysis of European Competitiveness

Timmer¹,

Los²,

Stehrer³

et al. 2014

Policy Research Working Papers

142

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. All rights reserved. Terms of use: Documents in ISSN 1725-2806 (online) EU Catalogue NoQB-AR-13-112-EN-N (online)Any reproduction, publication and reprint in the form of a different publication, whether printed or produced electronically, in whole or in part, is permitted only with the explicit written authorisation of the ECB or the authors. Marcel P. Timmer (corresponding author)University of Groningen; e-mail: m.p.timmer@rug.nl Bart Los University of Groningen Robert StehrerThe Vienna Institute for International Economic Studies (WIIW) Gaaitzen de Vries University of Groningen AbstractIncreasing fragmentation of production across borders is changing the nature of international competition. As a result, conventional indicators of competitiveness based on gross exports become less informative and new measures are needed. In this paper we propose an ex-post accounting framework of the value added and workers that are directly and indirectly related to the production of final manufacturing goods, called 'manufactures GVC income' and 'manufactures GVC jobs'. We outline these concepts and provide trends in European countries based on a recent multi-sector input-output model of the world economy. We find that since 1995 revealed comparative advantage of the EU27 is shifting to activities related to the production of non-electrical machinery and transport equipment. The workers involved in manufactures GVCs are increasingly in services, rather than manufacturing industries. We also find a strong shift towards activities carried out by high-skilled workers, highlighting the uneven distributional effects of fragmentation. The results show that a GVC perspective is needed to better inform the policy debates on competitiveness.

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Section: Non-technical Summarymentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Fragmentation, Incomes, and Jobs: An Analysis of European Competitiveness

Timmer¹,

Los²,

Stehrer³

et al. 2014

Policy Research Working Papers

142

View full text Add to dashboard Cite

show abstract

“…For example, have used tables for China distinguishing for any industry (e.g. Telecommunication equipment, computer, and other electronic equipment) whether its production is for domestic use only, whether it is for processing exports, or whether it is other production (see also Koopman et al, 2012). In a similar vein, tables have been constructed for Japan (Ogawa et al, 2012) reflecting for each industry the production of the small-sized and the large-sized firms in that industry.…”

Section: Exploiting Sources Of Informationmentioning

confidence: 99%

“…At this stage, we mainly focus on value-added, employment, environmental impacts generated by Downloaded by [University of Cambridge] at 11:33 12 August 2014 international trade and the slicing up of global value chains (for example, Chen et al, 2001Chen et al, , 2012Koopman et al, 2012;Timmer et al, 2013). Two kinds of IOTs have been discussed a lot: intercountry and single country IOTs.…”

Section: Global Value Chains In the I-o Frameworkmentioning

confidence: 99%