The Role of Newly Industrialized Economies in Global Value Chains

IMF Working Papers, October 17, 2016

Source details

Canonical URL

The Role of Newly Industrialized Economies in Global Value Chains

Other formats

• Markdown version
• Structured JSON version
• Bundle manifest

Bibliographic details

• Authors: Dominik Boddin
• Published: October 17, 2016
• Series: IMF Working Papers
• DOI: https://doi.org/10.5089/9781475545456.001

Summary

• Author: Dominik Boddin
• Date: October 17, 2016
• Series: Working Paper No. 2016/207
• Core objective: To raise awareness of the limitations of traditional trade measures on a gross output basis given increased vertical specialization and the dominance of trade in intermediates rather than final goods.
• Data source used: WIOD, a world input output table, employed as an alternative trade measure to analyze the role of six newly industrialized economies in global value chains.
• Key headline result: Export shares measured on a gross output basis and on a value added basis differed by more than 20 percent for some industries.

Methodology and scope

• Analytical approach:
  • Use of world input output data (WIOD) to shift from gross output trade measures to value added–based measures.
  • Comparative analysis of export shares across industries using both gross output and value added metrics.
• Coverage:
  • Focus on six newly industrialized economies (specific economies not listed on the page overview).
  • Cross-industry comparisons highlighting differences between measurement approaches.

Key findings

• Differences between gross output–based measures and value added–based measures are striking.
• For some industries, export shares measured by the two methods differed by more than 20 percent.
• The dominance of trade in intermediates and increased vertical specialization undermine the informational value of traditional gross output trade measures for understanding modern global trade dynamics.

Policy implications and recommendations

• There is a need for more sophisticated world input output data to form a better understanding of global trade dynamics and country interdependencies.
• Researchers and policymakers should complement gross output trade statistics with value added–based measures when analyzing export structures and trade linkages, particularly in contexts with high vertical specialization and intermediate goods trade.

Content in this bundle

• The Role of Newly Industrialized Economies in Global Value Chains
  • The Role of Newly Industrialized Economies in Global Value Chains (Markdown version)
  • The Role of Newly Industrialized Economies in Global Value Chains (PDF)