Services and Global Value Chains: Servicification of Manufacturing and Services Networks

2015 ◽  
Vol 06 (03) ◽  
pp. 1550014 ◽  
Author(s):  
Rainer Lanz ◽  
Andreas Maurer
Keyword(s):  
Developing Economies ◽  
Value Added ◽  
Global Value Chains ◽  
Value Chains ◽  
Evidence Based ◽  
Measurement Issues ◽  
International Services ◽  
Trade In Value Added

The role of services as an input into manufacturing production — often termed "servicification" of manufacturing — is substantial in both developed and developing economies. The paper lays out conceptual and measurement issues related to services networks and provides evidence based on trade in value added statistics. Compared to goods value chains, services networks appear less fragmented internationally based on trade in value added statistics and survey evidence. However, to better capture the international services fragmentation, advances in statistics by enterprise characteristics and by mode of supply, i.e., taking into account the movement of labor and capital, are required.

Russia–ASEAN: Trade and Global Value Chains

2015 ◽  
pp. 25-39
Author(s):  
K. Muradov
Keyword(s):  
South Korea ◽  
Value Chain ◽  
Bilateral Trade ◽  
Value Added ◽  
Global Value Chains ◽  
Trade Flows ◽  
Value Chains ◽  
Trade Data ◽  
Traded Goods ◽  
Trade In Value Added

Traditional trade statistics that originate in customs records is inadequate to measure the complex interdependencies in today’s globalized economy, or what is known as the global value chains. The article focuses on Russia–ASEAN trade. The author applies innovative methods of measuring trade in value added terms in order to capture the unobserved bilateral linkages behind the officially recorded trade flows. First, customs and balance of payments sources of bilateral trade data are briefly reviewed. For user, there are at least two inherent problems in those data: the inconsistencies in “mirror” trade flows and the attribution of the origin of a traded product wholly to the exporting country. This results in large discrepancies between Russian and ASEAN “mirror” trade data and, arguably, their low importance as each other’s trade partners. Next, the author explores new data from inter-country input-output tables that necessarily reconcile bilateral differences and offer greater detail about the national and sectoral origin or destination of traded goods and services. Relevant data are derived from the OECD-WTO TiVA database and are rearranged to obtain various estimates of Russia–ASEAN trade in value added in 2009. The main finding is that sizable amount of the value added of Russian origin is embodied in third countries’ exports to ASEAN members and ASEAN members’ exports to third countries. As a result, the cumulative flow of Russia’s value added to ASEAN members is estimated to be 62% larger than the direct gross exports, whereas for China and South Korea it is, respectively, 21% and 23% smaller. The indirect, unobserved value added flows can be largely explained by the use of Russian energy resources, chemicals and metals as imported inputs in third countries (China, South Korea) and ASEAN members’ own production. The contribution of these inputs is then accumulated along the value chain. Finally, the most important sectoral value chains are visualized for readers’ convenience. So far, it’s apparent that Russia is linked to ASEAN countries through intricate production networks and indirectly contributes to their trade with third countries.

scholarly journals Investigating ASEAN’s Participation in Global Value Chains: Production Fragmentation and Regional Integration

2021 ◽  
Vol 38 (02) ◽  
pp. 159-188
Author(s):  
SHENG ZHONG ◽  
BIN SU
Keyword(s):  
Economic Integration ◽  
Emerging Economies ◽  
Regional Integration ◽  
Value Added ◽  
Global Value Chains ◽  
Value Chains ◽  
Advanced Economies ◽  
New Evidence ◽  
Do So

This paper focuses on the Association of Southeast Asian Nations (ASEAN)—a major final assembler in production—where studies and evidence on the role of the region in global value chains are limited. We seek to provide new evidence regarding the extent and patterns of international fragmentation in ASEAN. To do so, we derive the foreign value-added shares of final products for all global value chains of ASEAN. Using the Asian Development Bank’s multiregional input–output tables for 2000–2017, we document a series of stylized facts. The results show declining foreign value-added shares in ASEAN. Regional economic integration within ASEAN has increased, while value-added contributions vary widely across its members. We find evidence of increasing value-added contributions from emerging economies to ASEAN, whereas the contributions from advanced economies have declined.

Manufacturing and value-added dynamics in global value chains: the case of Italy

2020 ◽  
Vol 30 (4) ◽  
pp. 457-470
Author(s):  
Chiara Burlina ◽  
Eleonora Di Maria
Keyword(s):  
Design Methodology ◽  
Value Added ◽  
Global Value Chains ◽  
Value Chains ◽  
Content Type ◽  
New Methods ◽  
Trade In Value Added ◽  
Revealed Comparative Advantage Index ◽  
Over Time ◽  
Made In

Purpose This paper aims to provide a snapshot of various countries’ contributions to value produced along global value chains (GVCs). It focusses on manufacturing activities and their evolution over time, in the context of GVC regionalisation. Design/methodology/approach The Trade in Value Added (TiVA) and World Integrated Trade Solution databases for the period of 2005-2015 were used to explore the case of Italy and its industries’ specialisations (Made in Italy): fashion, furniture, automotive and machinery traditionally organised into clusters. Various analyses were used to show the dynamics of gross import–export and imported–exported value-added. Moreover, the revealed comparative advantage index was computed to test whether the Made in Italy sector remains a source of competitive advantage for Italy within GVCs. Findings The results highlight how the geography of value-added is changing over time, with growing importance placed on the countries close to Italy and with a different pace according to each considered GVC. Originality/value The paper applied new methods to compare trade and analyse value-added dynamics through a recent database released by the Organization for Economic Co-operation and Development within the TiVA initiative that is useful for scholars and policymakers.

Global Value Chains and East Asian Trade in Value-Added

2015 ◽  
Vol 14 (3) ◽  
pp. 129-144 ◽  
Author(s):  
Nakgyoon Choi
Keyword(s):  
East Asia ◽  
East Asian ◽  
Free Trade Agreements ◽  
Value Added ◽  
Global Value Chains ◽  
Value Chains ◽  
Labor Ratio ◽  
Opposite Trend ◽  
Capital Labor Ratio ◽  
Trade In Value Added

The rise of global value chains (GVCs) has changed the patterns of trade in East Asia. This paper aims to analyze GVCs since the mid 1990s and to investigate the determinants of East Asian trade in value-added. At the world level, export (measured in value-added) is increasingly sensitive to the capital–labor ratio and high-skilled labor productivity. In East Asia, however, the opposite trend is seen. It is also found that free trade agreements do not promote export in East Asia, only export in intermediate goods.

scholarly journals The CEECs in global value chains: The role of Germany

2018 ◽  
Vol 68 (1) ◽  
pp. 1-29 ◽  
Author(s):  
Łukasz Ambroziak
Keyword(s):  
Value Added ◽  
Global Value Chains ◽  
European Countries ◽  
Value Chains ◽  
Eastern European ◽  
The Czech Republic ◽  
Eastern European Countries ◽  
Fragmentation Of Production ◽  
Backward Linkages

This paper aims to present the role of Germany in the global value chains (GVCs) of 10 Central and Eastern European countries (CEECs) in 1995–2011. GVCs, being a result of the fragmentation of production processes, have changed the nature of economic globalisation. The study covers five Central European countries (CECs) (the Czech Republic, Hungary, Poland, Slovakia and Slovenia), the three Baltic States (Estonia, Lithuania and Latvia) as well as Bulgaria and Romania. Germany is chosen because it is the main trading partner of the majority of the CEECs. The illustration of the position of Germany in GVCs of the CEECs is based on trade statistics in value added terms. The research results show that Germany has become an engine of increasing integration of the CECs in the GVCs. The role of Germany as a supplier of inputs to the CECs’ exports (backward linkages) is larger than its role as an exporter of value added originating from the CECs (forward linkages).

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