## Calculating Trade in Value Added

_IMF Working Papers, July 31, 2017_

## Source details

**Canonical URL:** [Calculating Trade in Value Added](https://www.imf.org/en/publications/wp/issues/2017/07/31/calculating-trade-in-value-added-45114)

## Other formats

- [Markdown version](/en/publications/wp/issues/2017/07/31/calculating-trade-in-value-added-45114/index.md)
- [Structured JSON version](/en/publications/wp/issues/2017/07/31/calculating-trade-in-value-added-45114/index.json)
- [Bundle manifest](/en/publications/wp/issues/2017/07/31/calculating-trade-in-value-added-45114/bundle-manifest.json)

## 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

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### 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.

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## Content in this bundle

- **Calculating Trade in Value Added, WP/17/178, July 2017**
  - [Calculating Trade in Value Added, WP/17/178, July 2017 (Markdown version)](/-/media/files/publications/wp/2017/wp17178.pdf.md){rel="alternate" type="text/markdown"}
  - [Calculating Trade in Value Added, WP/17/178, July 2017 (PDF)](/-/media/files/publications/wp/2017/wp17178.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/wp/issues/2017/07/31/calculating-trade-in-value-added-45114_