scholarly journals Measuring Global Value Chains

2018 ◽  
Vol 10 (1) ◽  
pp. 207-236 ◽  
Author(s):  
Robert C. Johnson
Keyword(s):  
Multinational Firms ◽  
Bilateral Trade ◽  
Value Added ◽  
Global Value Chains ◽  
Value Chains ◽  
Production Networks ◽  
Input Output ◽  
Firm Level ◽  
Level Data ◽  
Production Stages

Recent decades have seen the emergence of global value chains (GVCs), in which production stages for individual goods are broken apart and scattered across countries. Stimulated by these developments, there has been rapid progress in data and methods for measuring GVC linkages. The macro approach to measuring GVCs connects national input–output tables across borders by using bilateral trade data to construct global input–output tables. These tables have been applied to measure trade in value added, the length of and location of producers in GVCs, and price linkages across countries. The micro approach uses firm-level data to document firms’ input sourcing decisions, how import and export participation are linked, and how multinational firms organize their production networks. In this review, I evaluate progress in these two approaches, highlighting points of contact between them and areas that demand further work. I argue that further convergence between these approaches can strengthen both, yielding a more complete empirical portrait of GVCs.

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 Chemical industry and value-added trade – A comparative study on Hungary and Poland

2019 ◽  
Vol 69 (1) ◽  
pp. 81-99 ◽  
Author(s):  
Pawel Folfas ◽  
Beáta Udvari
Keyword(s):  
Economic Policy ◽  
World Economy ◽  
New Products ◽  
Value Added ◽  
Value Chains ◽  
Production Networks ◽  
Input Output ◽  
Global Production Networks ◽  
The World ◽  
Chemical Products

Nowadays, global production networks (GPN) and global value chains (GVC) play an important role in the world economy intensifying the trade and production networks and resulting in products having value-added in different countries. The analysis of how many intermediate products a country imports in order to produce a product and of how many products a country exports to another country in order to produce new products draws the attention to value-added trade. In the present study, we compare the Hungarian and Polish value-added trade of chemicals and chemical products. We use the OECD-WTO data of value-added trade, which is based on an input-output table. By calculating numerous indices, we reveal that the domestic value-added of chemicals and chemical products in the two countries was relatively low and should be increased by adequate economic policy.

scholarly journals Globally Trading Firms in Canada: Productivity and Global Value Chains

2021 ◽  
Vol 22 (1) ◽  
pp. 1-24
Author(s):  
Ram C. Acharya
Keyword(s):  
Economic Performance ◽  
Productivity Growth ◽  
Labour Productivity ◽  
Global Value Chains ◽  
Value Chains ◽  
Business Sector ◽  
Firm Level ◽  
Labour Productivity Growth ◽  
Level Data ◽  
Capital Intensive

Using firm-level data in Canada from 2002 to 2008, I compare the economic performance of three types of firms: those that both export and import (called globally trading firms—GTFs), exporters-only, and importers-only. The results show that GTFs are more productive, larger, more capital intensive, pay higher wages, trade more goods, and trade with more countries than both types of one-way traders. These premia for GTFs were found even before they turned into GTFs (self-selection). Moreover, even after turning into GTFs, the productivity growth of a subset of them was faster than that of one-way traders. The higher the involvement in global value chains (GVCs), the higher was the performance of the “learning-by-turning GTFs”. The GTFs with higher productivity growth were the ones that imported from multiple countries, not those that imported only from China. By another measure, they were both-in-both GTFs—those that traded both final and intermediate goods, and in both directions (exports and imports). Even though they employed only 10% of Canada’s business sector workforce, they contributed 60% of its labour productivity growth.

scholarly journals Domestic Value Added in Exports: Theory and Firm Evidence from China

2016 ◽  
Vol 106 (6) ◽  
pp. 1402-1436 ◽  
Author(s):  
Hiau Looi Kee ◽  
Heiwai Tang
Keyword(s):  
Firm Heterogeneity ◽  
Value Added ◽  
Global Value Chains ◽  
Aggregation Bias ◽  
Value Chains ◽  
Investment Liberalization ◽  
Level Data ◽  
Transaction Level ◽  
Firm Evidence ◽  
Trade And Investment

China has defied the declining trend in domestic content in exports in many countries. This paper studies China's rising domestic content in exports using firm- and customs transaction-level data. The approach embraces firm heterogeneity and hence reduces aggregation bias. The study finds that the substitution of domestic for imported materials by individual processing exporters caused China's domestic content in exports to increase from 65 to 70 percent in the period 2000–2007. Such substitution was induced by the country's trade and investment liberalization, which deepened its engagement in global value chains and led to a greater variety of domestic materials becoming available at lower prices. (JEL F13, F14, L14, O19, O24, P31, P33)

scholarly journals FDI, Global Value Chains, and Local Sourcing in Developing Countries

2017 ◽  
Vol 17 (284) ◽  
Author(s):  
Vito Amendolagine ◽  
Andrea Presbitero ◽  
Roberta Rabellotti ◽  
Marco Sanfilippo ◽  
Adnan Seric
Keyword(s):  
Global Value Chains ◽  
Value Chains ◽  
Data Sets ◽  
Host Countries ◽  
African Countries ◽  
Firm Level ◽  
Foreign Investors ◽  
Level Data ◽  
Sub Saharan ◽  
Local Sourcing

The local sourcing of intermediate products is one the main channels for foreign direct investment (FDI) spillovers. This paper investigates whether and how participation and positioning in the global value chains (GVCs) of host countries is associated to local sourcing by foreign investors. Matching two firm-level data sets of 19 Sub-Saharan African countries and Vietnam to country-sector level measures of GVC involvement, we find that more intense GVC participation and upstream specialization are associated to a higher share of inputs sourced locally by foreign investors. These effects are larger in countries with stronger rule of law and better education.

scholarly journals Effect of the integration into Global Value Chains on the employment contract in Central and Eastern European countries

Equilibrium ◽  
2020 ◽  
Vol 15 (2) ◽  
pp. 275-294
Author(s):  
Dagmara Nikulin ◽  
Sabina Szymczak
Keyword(s):  
Value Added ◽  
Global Value Chains ◽  
European Countries ◽  
Labor Standards ◽  
Value Chains ◽  
Eastern European ◽  
Decent Work ◽  
Firm Level ◽  
Employment Contract ◽  
Eastern European Countries

Research background: In the era of globalization, there is a need to address decent work deficits in Global Value Chains (GVCs). The forms of working conditions reveal a broad dispersion of contents. The literature review exposes hardly any Europe-focused research assessing the socio-economic impact of global production links and going beyond their pure economic effects assessed in terms of employment, productivity or wages. Purpose of the article: This paper investigates how involvement in GVCs affects labor standards. In particular, we assess how the integration into GVCs impacts the probability of having indefinite type of employment contract, which stands for one of the decent work indicator. Moreover, we draw individual and firm-level characteristics determining the type of employment contract. Methods: We use linked employer-employee data from the Structure of Earnings Survey merged with industry-level statistics on GVCs based on World Input-Output Database — the sample is composed of over 5 million workers from 10 Central and Eastern European countries (CEEC) observed in 2014. The involvement into GVCs is measured using a novel approach based on the concepts of global import intensity (GII). We employ logistic regression with robust standard errors. Findings & Value added: Controlling for individual and firm-level characteristics (sex, age, education level, length of service in enterprise, size of the enterprise) we find that greater integration into GVCs increases the probability of having temporary type of employment contact, mainly in tradable sectors. However, across CEE countries the relation between GVC and employment type is mixed. In this way we expand the existing literature by reporting the effects of GVCs on labor standards in CEEC.

scholarly journals Opportunities for the integration of the Ukrainian industry into global value chains

2018 ◽  
pp. 65-74 ◽  
Author(s):  
Оksana Kushnirenko ◽  
Olga Zarudna
Keyword(s):  
Production Systems ◽  
Negative Impact ◽  
Value Added ◽  
Global Value Chains ◽  
Value Chains ◽  
Manufacturing Companies ◽  
Production Networks ◽  
Processing Industry ◽  
Pass Through ◽  
The Impact

Relevance of the research topic is due to the impact of globalization which had brought an increasing number of more and more products pass through global value-added chains to reach the end users. That  has led to new forms of transnational production,  that gives new opportunities for Ukrainian producers. Formulation of the problem. The utilizing the opportunities and mitigating the negative impact of the liberalization of foreign trade makes new requirements  for production oriented businesses in a more open and competitive international environment. The development of global production systems provides opportunities for participating in global value chains, that opens up new opportunities for the industry of Ukraine and requires further scientific researches. Analysis of recent research and publications. There are various dimensions to the development of global value chains of industry that need to be taken into account. The most important of these are P.Marsh, R.Kaplinski and Morris, K.Schwab, R.Rajk, D.Rodrik, E.Rajnert, S.Veber, P Labasta, G. Dzerffi, Geets VM, Vishnevsky AS, Deineko LV, Kizim NA, Kvasha TK, Lyashenko VI, Musina LA, Pyatnitsky VT, Sidenko V.R. and others. Selection of unexplored parts of the general problem. In the context of increasing influence of integration processes on the development of international trade and production, the problem of choosing the most effective ways of integration into global value chains for the processing industry of Ukraine as a reliable supplier of products with a higher degree of processing remains insufficiently studied. Setting the task, the purpose of the study. The objective of the article is to analyze the features of the formation of value added chains and ways of integrating them into the processing industry of Ukraine as a reliable supplier of products with a higher degree of processing. The purpose of the study is developing the proposals for possible constructive ways of promoting the integration of Ukrainian processing industry into global value-added chains. Method or methodology for conducting research. This paper used of general scientific: abstract-logical, induction and deduction, systemic approach; analysis, and synthesis and special scientific research methods: statistical comparisons, grouping, sampling; structure-functional analysis, expert judgments. Presentation of the main material (results of work).The existing approaches to the definition of the notion of value added chains are disclosed and their grouping is carried out on significant grounds; The features and modern trends in the development of global value chains in the processing industry are explored; The opportunities and the existing risks have been identified in the chain of value added for the developing countries; and substantiated practical recommendations for choosing the most effective ways of integration into global value chains for the processing industry of Ukraine as a reliable supplier of products with a higher degree of processing. The field of application of results. The results of this research can be applied in the process of formation and implementation of Ukraine's integration industrial policy. Conclusions according to the article. In the article authors was made in  assessment of the integration of Ukrainian manufacturing companies into global value chains. The adoption of effective tools and instruments for encouraging the entry of Ukraine's processing industry into global value chains provides for the creation of effective policies and institutions, aimed at eliminating restrictions in the the Ukrainian producers integration into international production networks. 

scholarly journals A Review of Literature of Global Value Chains

2021 ◽  
Author(s):  
Sourish Dutta
Keyword(s):  
Large Scale ◽  
Value Added ◽  
Global Value Chains ◽  
Division Of Labour ◽  
Value Chains ◽  
Production Networks ◽  
International Production ◽  
International Borders ◽  
Home Based ◽  
Business Functions

The phenomenon of global value chains (GVCs) indicates a division of labour type production structure in which tasks and business functions are distributed among several companies, globally, or regionally (Grossman and Rossi-Hansberg 2008). The critical features of GVCs are therefore the international dimension of the production process and the "contractualisation" of buyer and seller relationships, often across international borders (Antras 2016). As a result, these international production networks are highly complex regarding geography, technology, and the different types of firms involved (from large retailers and highly large-scale mechanised manufacturers to small home-based production). Sometimes it may be impossible even to identify all the countries that are involved or the extent of their involvement (Gereffi and FernandezStark 2016). However, the recent development of OECD-WTO’s Trade-in Value Added (TiVA) data represents a fundamental step forward in understanding GVC trade. Grossman & RossiHansberg (2008, 2012) rightly point out that the different tasks, rather than sectors, define the specialisation of countries in the value chains.

scholarly journals An institutional mechanism for integrating domestic manufacturing into global value chains

2019 ◽  
Vol 17 (3) ◽  
pp. 438-451
Author(s):  
Liudmyla Deineko ◽  
Olena Tsyplitska ◽  
Oksana Kushnirenko ◽  
Oleksandr Deineko
Keyword(s):  
Linear Regression ◽  
Multiple Linear Regression ◽  
Manufacturing Industry ◽  
Value Added ◽  
Developed Countries ◽  
Global Value Chains ◽  
Value Chains ◽  
Production Networks ◽  
The Government ◽  
Institutional Mechanism

The study reveals the peculiarities of modern global production development due to global value chains (GVCs) formation that allow both developing and developed countries to integrate successfully into international production networks. This research is aimed at identifing key factors responsible for the upstream movement of Ukraine through GVCs and determining locations for production capacities, as well as at developing an institutional mechanism for facilitating the successful integration of domestic producers into GVSs. To achieve this, a multiple linear regression reflecting the interrelation between manufacturing industry share in exports value added and the institutional and economic indicators is analyzed. Three scientific hypotheses are tested and two of them are verified. The multiple linear regression results disclose a significant impact of institutional factors on the country’s ability to participate in GVCs and justify the first hypothesis, namely the higher the government effectiveness and regulatory quality are, the higher the manufacturing value added in exports is. Better governance and administrative functions performance enhance companies’ export potential. The model also verifies the second hypothesis that emphasizes better ability to join GVCs with low and medium technology product than with a high technology one. The model outputs contradict the third hypothesis on the protectionism: high tariffs for imports significantly matter in exports promotion. However, this result should be considered while accounting for the global trend of trade liberalization and Ukraine’s international agreements. The article proposes policy recommendations for improving the positions of Ukraine in GVCs.

icio: Economic analysis with intercountry input–output tables

2021 ◽  
Vol 21 (3) ◽  
pp. 708-755
Author(s):  
Federico Belotti ◽  
Alessandro Borin ◽  
Michele Mancini
Keyword(s):  
Policy Research ◽  
Value Added ◽  
Global Value Chains ◽  
Trade Flows ◽  
Value Chains ◽  
World Bank Group ◽  
Input Output ◽  
Working Paper ◽  
Level Of Aggregation ◽  
Bank Group

Several new statistical tools and analytical frameworks have been recently developed to measure countries’ and sectors’ involvement in global value chains. Such a wealth of methodologies reflects the fact that different empirical questions call for distinct accounting methods and different levels of aggregation of trade flows. In this article, we describe icio, a new command for the computation of the most appropriate measures of trade in value added as well as participation in global value chains. icio follows the conceptual framework proposed by Borin and Mancini (2019, Policy Research Working Paper WPS 8804; WDR 2020 Background Paper, World Bank Group), which in turn extends, refines, and reconciles the other main contributions in this strand of the literature. icio is flexible enough to work with any intercountry input–output table and with any level of aggregation of trade flows.

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