Working Paper: NBER ID: w17819
Authors: Pol Antràs; Davin Chor; Thibault Fally; Russell Hillberry
Abstract: We propose two distinct approaches to the measurement of industry upstreamness (or average distance from final use) and show that they yield an equivalent measure. Furthermore, we provide two additional interpretations of this measure, one of them related to the concept of forward linkages in Input-Output analysis. On the empirical side, we construct this measure for 426 industries using the 2002 US Input-Output Tables. We also verify the stability of upstreamness across countries in the OECD STAN database, albeit with a more aggregated industry classification. Finally, we present an application that explores the determinants of the average upstreamness of exports at the country level using trade flows for 2002.
Keywords: upstreamness; global production chains; international trade; input-output analysis
JEL Codes: F10; F14; L16; L23; O14
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| stronger country institutions (O17) | propensity to export in more downstream industries (F14) |
| rule of law (K15) | export upstreamness (F10) |
| financial development (O16) | propensity to export in more downstream industries (F14) |
| relative factor endowments (F16) | export upstreamness (F10) |
| physical capital and skill abundance (E22) | export upstreamness (F10) |
| income quartiles (D31) | average upstreamness of exports (F10) |