Calculating Trade in Value Added
IMF Working Papers, July 31, 2017
Source details
- Canonical URL
- Calculating Trade in Value Added
Other formats
Bibliographic details
- Authors: Aqib Aslam, Natalija Novta, Fabiano Rodrigues Rodrigues Bastos
- Published: July 31, 2017
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484311493.001
Summary and purpose
- This paper sets out the key concepts necessary to calculate trade in value added using input-output tables.
- Aim: provide an introduction to the analysis of global value chains for use in policy work.
- Accompanying materials: an accompanying suite of Matlab codes that can be used with the full set of Eora MRIO tables.
Methodology and data
- Explains the basic structure of an input-output table and the matrix algebra behind the computation of trade in value added statistics.
- Works in detail with an example of a global input-output table for 3 countries each with 4 sectors, provided by the Eora Multi-Region Input-Output (MRIO) database.
- Computations and measures covered:
- domestic value-added
- foreign value added
- forward linkages
- backward linkages
- measures of a country’s participation in global value chains
- measures of a country’s position in global value chains
Key findings and measures
- The paper provides explicit computation methods for:
- DVXGross export (as listed in Keywords)
- value-added export and exports decomposition from an export perspective
- use of inverse matrix and matrix algebra to derive trade in value added statistics
- Subject areas: Exports, Global value chains, Globalization, International trade
Practical resources and usage
- Example implementation: detailed walkthrough using the Eora MRIO example (3 countries × 4 sectors).
- Reproducibility: Matlab codes provided to apply the methods to the full Eora MRIO tables.
- Intended users: policy practitioners and researchers engaged in global value chain analysis.
Content in this bundle
- Calculating Trade in Value Added, WP/17/178, July 2017