Heckscher–Ohlin: Evidence from Virtual Trade in Value Added

Ito, Tadashi; Rotunno, Lorenzo; Vézina, Pierre Louis

doi:10.1111/roie.12230

Cited by 24 publications

(20 citation statements)

References 31 publications

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“…1 The U.S.-China trade imbalance falls by approximately 30 % to 40 % when measured in value added in 2004 (Johnson & Noguera, 2012). Value-added exports follow the Heckscher-Ohlin theory more closely than gross exports, as value-added flows capture precisely where production factors are used (Ito et al, 2017). Value-added exports thus capture bilateral trade linkages better than gross exports.…”

Section: Introductionmentioning

confidence: 99%

Economic Policy Uncertainty and Manufacturing Value-added Exports

Zhao

2022

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This study explores the effects of increased economic policy uncertainty (EPU) in both importing and exporting countries on manufacturing value-added exports. The results show that increased EPU of both importing and exporting countries would result in decreases in manufacturing value-added trade flows, and the negative effect of exporters' EPU is larger than that of importers' EPU. Our results also provide evidence on the influence channels: increased EPU of exporting countries affects manufacturing value-added trade flows primarily through the cost to export, while increased EPU of importing countries primarily through market demand. This conclusion is robust to a series of robustness checks.

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Section: Introductionmentioning

confidence: 99%

Economic Policy Uncertainty and Manufacturing Value-added Exports

Zhao

2022

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“…Expanding GVCs have a significant implication on various economic indicators (see Feenstra, 1998;Baldwin, 2012), especially in East Asia (see Ando and Kimura, 2005;Ando and Kimura, 2014;Kimura and Obashi, 2016;Obashi and Kimura, 2017). 3 Previous studies show that GVCs and value-added contents of trade have implications on trade imbalances (Johnson and Noguera, 2012), U.S. employment in importcompeting sectors (Shen and Silva, 2018;Shen, Silva, and H. Wang, 2018), business cycle synchronization (Duval et al, 2016), exchange rates (Bems and Johnson, 2017), trade policies (Blanchard, Bowen, and Johnson, 2017), Heckscher-Ohlin trade patterns (Ito, Rotunno, and Vézina, 2017), and geographical distribution of 'good' jobs and 'bad' jobs (Baldwin, Ito, and Sato, 2014).…”

Section: Introductionmentioning

confidence: 99%

Explaining the employment effect of exports: Value-added content matters

Sasahara

2019

Journal of the Japanese and International Economies

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This paper estimates and decomposes the impact of export opportunities on countries' employment by using a global input-output analysis, focusing on the U.S., China, and Japan.The greater they export, the greater employment in the exporting countries. However, we first document that the number of jobs created per exports varies substantially across destination countries. We find that exports from sectors with higher domestic value-added contents such as natural resource, textile, and service sectors lead to a greater employment effect. As a result, cross-country differences in sectoral compositions of exports explain a large part of the variations in the employment effects across destination countries. Time series changes in the employment effect of exports come from changes in (1) the labor-tooutput ratio, (2) input-output linkages, and (3) sectoral compositions in exports. Results suggest that the first channel worked to reduce the employment effect in all of the three countries we focused but the directions of the last two channels are different across the countries.

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“…Expanding GVCs have a significant implication on various economic indicators (see Feenstra, 1998;Baldwin, 2012), especially in East Asia (see Ando and Kimura, 2005;Ando and Kimura, 2014;Kimura and Obashi, 2016;Obashi and Kimura, 2017). 3 Previous studies show that GVCs and value-added contents of trade have implications on trade imbalances (Johnson and Noguera, 2012), U.S. employment in importcompeting sectors Shen, Silva, and H. Wang, 2018), business cycle synchronization (Duval et al, 2016), exchange rates (Bems and Johnson, 2017), trade policies (Blanchard, Bowen, and Johnson, 2017), Heckscher-Ohlin trade patterns (Ito, Rotunno, and Vézina, 2017), and geographical distribution of 'good' jobs and 'bad' jobs (Baldwin, Ito, and Sato, 2014).…”

Section: Introductionmentioning

confidence: 99%

Explaining the Employment Effect of Exports: Value-Added Content Matters

Sasahara

2018

SSRN Journal

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This paper estimates and decomposes the impact of export opportunities on countries' employment by using a global input-output analysis, focusing on the U.S., China, and Japan. The greater they export, the greater employment in the exporting countries. However, we first document that the number of jobs created per exports varies substantially across destination countries. We find that exports from sectors with higher domestic value-added contents such as natural resource, textile, and service sectors lead to a greater employment effect. As a result, crosscountry differences in sectoral compositions of exports explain a large part of the variations in the employment effects across destination countries. Time series changes in the employment effect of exports come from changes in (1) the labor-tooutput ratio, (2) input-output linkages, and (3) sectoral compositions in exports. Results suggest that the first channel worked to reduce the employment effect in all of the three countries we focused but the directions of the last two channels are different across the countries.

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Heckscher–Ohlin: Evidence from Virtual Trade in Value Added

Cited by 24 publications

References 31 publications

Economic Policy Uncertainty and Manufacturing Value-added Exports

Economic Policy Uncertainty and Manufacturing Value-added Exports

Explaining the employment effect of exports: Value-added content matters

Explaining the Employment Effect of Exports: Value-Added Content Matters

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