Calculating Trade in Value Added

By Aqib Aslam, Natalija Novta, Fabiano Rodrigues Rodrigues Bastos

July 31, 2017

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Format: Chicago

Aqib Aslam, Natalija Novta, and Fabiano Rodrigues Rodrigues Bastos. Calculating Trade in Value Added, (USA: International Monetary Fund, 2017) accessed September 19, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

This paper sets out the key concepts necessary to calculate trade in value added using input-output tables. We explain the basic structure of an input-output table and the matrix algebra behind the computation of trade in value added statistics. Specifically, we compute measures of domestic value-added, foreign value added, and forward and backward linkages, as well as measures of both a country’s participation and position in global value chains. We work 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. The aim is to provide an introduction to the analysis of global value chains for use in policy work. An accompanying suite of Matlab codes are provided that can be used with the full set of Eora MRIO tables.

Subject: Exports, Global value chains, Globalization, International trade

Keywords: DVXGross export, Eora MRIO table, Export goods, Export perspective, Exports, Exports decomposition, Global, Global value chains, Goods export, Input-Output, Input-output table, Inverse matrix, Matrix algebra, Multi-Region Input-Output, Output matrix, Trade in Value Added, Trade Integration, Value-added export, WP

Publication Details

Pages:

25
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2017/178
Stock No:

WPIEA2017178
ISBN:

9781484311493
ISSN:

1018-5941

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