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

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

doi:10.2139/ssrn.1949669

Cited by 104 publications

(154 citation statements)

References 17 publications

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“…14 Similarly, in non-advanced economies an industry mix tilted towards the production of manufactured goods is associated with larger spillovers the more integrated these economies are in global trade; in contrast, in advanced economies an industry structure tilted more towards manufacturing does not amplify spillovers if they 14 Strong participation in global value chains reflects that a large share of a country's domestic value added component of its exports is used in exports of other countries and suggests that its trade is focused on intermediate goods. The index for participation in global value chains I use is constructed as in Koopman et al (2010), using the newly released World Input-Output Database. Missing data for GVC participation have been imputed based on its bivariate correlation of around 0.8 with trade openness as measured by total trade relative to GDP.…”

Section: Non-linearitiesmentioning

confidence: 99%

Determinants of global spillovers from US monetary policy

Georgiadis

2016

Journal of International Money and Finance

241

127

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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. Terms of use: Documents in EconStor may AbstractThis paper assesses the global spillovers from identified US monetary policy shocks in a global VAR model. US monetary policy generates sizable output spillovers to the rest of the world, which are larger than the domestic effects in the US for many economies. The magnitude of spillovers depends on the receiving country's trade and financial integration, de jure financial openness, exchange rate regime, financial market development, labor market rigidities, industry structure, and participation in global value chains. The role of these country characteristics for the spillovers often differs across advanced and non-advanced economies and also involves non-linearities. Furthermore, economies which experience larger spillovers from conventional US monetary policy also displayed larger downward revisions of their growth forecasts in spring 2013 when the Federal Reserve upset markets by discussing tapering off quantitative easing. The results of this paper suggest that policymakers could mitigate their economies' vulnerability to US monetary policy by fostering trade integration as well as domestic financial market development, increasing the flexibility of exchange rates, and reducing frictions in labor markets. Other policies-such as inhibiting financial integration, industrialisation and participation in global value chains-might mitigate spillovers from US monetary policy, but are likely to reduce long-run growth. helped economies to raise their potential growth similarly, capital market integration and financial openness allows economies to reap collateral benefits from financial globalisation Clearly, a completely closed economy will not experience any spillovers whatsoever, but is likely to grow more slowly in the long run. In these cases, the trade-offs should be carefully considered before any measures are taken.

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Section: Non-linearitiesmentioning

confidence: 99%

Determinants of global spillovers from US monetary policy

Georgiadis

2016

Journal of International Money and Finance

241

127

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“…To decompose a country's bilateral gross exports, Stehrer (2013) used a method similar to that of Koopman et al (2011). This method led to insights into the role of double counting in VA trade.…”

Section: Literature Reviewmentioning

confidence: 99%

“…This method led to insights into the role of double counting in VA trade. However, contrary to Koopman et al (2011), in order to develop such a decomposition of bilateral exports, Stehrer used a 3-country and 1-sector model. Johnson and Noguera (2012) related VA balances to gross trade balances in terms of differences in bilateral VA to exports.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Grossman & Rossi-Hansberg, 2008;Feenstra, 2010) and empirical considerations (e.g. Johnson & Noguera, 2012;Koopman, Powers, Wang & Wei, 2011Stehrer & Foster-McGragor, 2013;Timmer, Dietzenbacher, Los, Stehrer & de Vries, 2015;Negengast & Stehrer, 2016;Ambroziak, 2016aAmbroziak, , 2016b. The breakthrough in the studies of the international fragmentation of production was the preparation of the world input-output tables (discussed in more detail below) and making them available.…”

Section: Introductionmentioning

confidence: 99%

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Decomposition of Poland’s Bilateral Trade Imbalances by Value Added Content

Ambroziak

2017

EBER

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“…A detailed description of the decomposition and calculations was presented by Koopman et al (2011). Three value-added components of gross export were identified: the Foreign Value Added (FVA), which is the value added from the import contained in the gross export; the Direct Value Added (DVA), originating directly in the sector for which the gross export value is defined; and the Indirect Value Added (IndVA), from other domestic economy sectors.…”

Section: The Structure Of the Gross Export As The Value Added Streammentioning

confidence: 99%

Fragmentation and the value-added structure of exports in Polish industry

Posłuszny¹

2015

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

Cited by 104 publications

References 17 publications

Determinants of global spillovers from US monetary policy

Determinants of global spillovers from US monetary policy

Decomposition of Poland’s Bilateral Trade Imbalances by Value Added Content

Fragmentation and the value-added structure of exports in Polish industry

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