Working Paper: NBER ID: w18579
Authors: Robert Koopman; Zhi Wang; Shangjin Wei
Abstract: This paper proposes a framework for gross exports accounting that breaks up a country's gross exports into various value-added components by source and additional double counted terms. By identifying which parts of the official trade data are double counted and the sources of the double counting, it bridges official trade (in gross value terms) and national accounts statistics (in value added terms). Our parsimonious framework integrates all previous measures of vertical specialization and value-added trade in the literature into a unified framework. To illustrate the potential of such a method, we present a number of applications including re-computing revealed comparative advantages and the magnifying impact of multi-stage production on trade costs.
Keywords: Value-added trade; Gross exports; Double counting; Global production chains; Vertical specialization
JEL Codes: F10
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| gross exports (F10) | value-added exports (F14) |
| gross exports (F10) | domestic value-added that returns home (F29) |
| gross exports (F10) | foreign value-added (F29) |
| gross exports (F10) | double counted terms (C35) |
| double counting informs assessment of country’s participation in global production chains (F10) | understanding structure of double counting (C43) |
| structure of double counting varies between countries (H60) | implications for understanding positions in global production chains (F61) |