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Accounting for Intermediates: Production Sharing and Trade (2009)
| Venue: | in Value Added. Mimeo, Princeton and UC |
| Citations: | 108 - 6 self |
BibTeX
@INPROCEEDINGS{Johnson09accountingfor,
author = {Robert C. Johnson and Guillermo Noguera},
title = {Accounting for Intermediates: Production Sharing and Trade},
booktitle = {in Value Added. Mimeo, Princeton and UC},
year = {2009}
}
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Abstract
We combine input-output and bilateral trade data to quantify cross-border production linkages. Using a complete trading system, we compute bilateral trade in value added for 87 countries and regions. The ratio of value added to gross exports is a measure of the intensity of production sharing. Across sectors, manufacturing has a relatively low ratio and thus accounts for a smaller share of exported value added than gross exports. Across countries, aggregate ratios are negatively correlated with exporter income, primarily due to cross-country differences in the composition of exports. Across bilateral partners, ratios vary widely and contain information on both bilateral and triangular production chains. Further, bilateral imbalances measured in value added differ from gross imbalances.
