Johnson, Robert C. and Noguera, Guillermo (2017) A portrait of trade in value added over four decades. The Review of Economics and Statistics, 99 (5). pp. 896-911. doi:10.1162/REST_a_00665

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Abstract

We combine data on trade, production, and input use to document changes in the value added content of trade between 1970 and 2009. The ratio of value-added to gross exports fell by roughly 10 percentage points worldwide. The ratio declined 20 percentage points in manufacturing, but rose in non-manufacturing sectors. Declines also differ across countries and trade partners: they are larger for fast growing countries, for nearby trade partners, and among partners that adopt regional trade agreements. Using a multi-sector structural gravity model with input-output linkages, we show that changes in trade frictions play a dominant role in explaining all these facts.

Item Type:	Journal Article
Subjects:	H Social Sciences > HB Economic Theory H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HF Commerce H Social Sciences > HG Finance
Divisions:	Faculty of Social Sciences > Economics
Library of Congress Subject Headings (LCSH):	Value added, Business logistics, International business enterprises, International trade
Journal or Publication Title:	The Review of Economics and Statistics
Publisher:	MIT Press
ISSN:	0034-6535
Official Date:	31 December 2017
Dates:	Date Event 31 December 2017 Published 29 November 2017 Available 10 April 2017 Modified 1 October 2016 Accepted
Volume:	99
Number:	5
Page Range:	pp. 896-911
DOI:	10.1162/REST_a_00665
Status:	Peer Reviewed
Publication Status:	Published
Access rights to Published version:	Restricted or Subscription Access

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