Give Credit Where Credit Is Due: Tracing Value Added in Global Production Chains

Abstract

The views in the paper are solely those of the authors and may not reflect the views of the USITC, its Commissioners, or of any other organization that the authors are affiliated with. The authors thank participants of OECD-World Bank workshop "New metrics for global value chain analysis" in Paris, IEFS China 2010 Conference in Beijing, and seminar at Purdue University for helpful comments and suggestions. The authors are particularly grateful for the constructive discussion with Dr. Kei-Mu Yi at the Federal Reserve Bank of Philadelphia in developing the two-country cases and the relationship between our new measures of vertical specialization and the original HIY measures. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peerreviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.

Accounting for intermediates: Production sharing and trade in value added

“…31 Puzzello (2010) compares factor content calculations with and without the proportionality assumption using IDE-JETRO regional input-output tables for Asia. Koopman et al (2010) compute value added content using disaggregate data classified under the BEC system to estimate bilateral intermediate goods flows. While relaxing proportionality seems to have small aggregate consequences, it may simultaneously have large effects on value added trade at the sector level.…”

Exiopol – Development and Illustrative Analyses of a Detailed Global MR Ee Sut/Iot

“…Both data sets needed further elaboration and creation of correspondence tables to the EXIOPOL classification(Bouwmeester, 2011).5 This assumption has been referred to as the proportionality assumption. The implications of this assumption are discussed inKoopman et al (2010) andPuzzello (2012), among others.Downloaded by [Chinese University of Hong Kong] at 07:13 03 February 2015…”

A NEW SUT CONSOLIDATION METHOD TESTED BY A DECOMPOSITION OF VALUE ADDED AND CO2EMBODIED IN EU27 EXPORTS

“…Puzzello (2011) finds that using the proportionality assumption results in countries being a little more intensive in their own factors. Koopman et al (2010) show that it may overestimate the share of intermediate goods in the imports of developed countries, whereas it may underestimate the share of final goods in the exports of developing countries.…”