Tracing Value-Added and Double Counting in Gross Exports
By Robert Koopman, Zhi Wang, Shang-jin Wei. 2012
1,830 citations recorded by the source corpus.
This paper proposes a framework for gross exports accounting that breaks up a country's gross exports into various value-added components by source and additional double counted terms. By identifying which parts of the official trade data are double counted and the sources of the double counting, it bridges official trade (in gross value terms) and national accounts statistics (in value added terms). Our parsimonious framework integrates all previous measures of vertical specialization and value-added trade in the literature into a unified framework. To illustrate the potential of such a method, we present a number of applications including re-computing revealed comparative advantages and the magnifying impact of multi-stage production on trade costs.
Subfields: Economics and Econometrics, Strategy and Management
View Paper: https://www.semanticscholar.org/paper/c548351514dfd44380779d61ea46428120162114
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Citations in the corpus
- De-Globalisation? Global Value Chains in the Post-COVID-19 Age (2020, neutral): “Other important papers on the measurement of VC participation include the pioneering work of Hummels et al. (2001), Johnson and Noguera (2012), and Koopman et al. (2014).”
- Measuring Bilateral Exports of Value Added: A Unified Framework (2018, positive): “The same goes for second-tier suppliers producing these, and so on.13 In their comment on Koopman et al. (2014), Los et al. (2016) showed that using a particular type of the “Hypothetical Extraction Method” (HEM) as pioneered by Paelinck et al. (1965) and Strassert (1968) can be used to derive…”
- The Continental Divide? Economic Exposure to Brexit in Regions and Countries on Both Sides of The Channel (2018, positive): “In their comment on Koopman et al. (2014), Los et al. (2016) provide an approach based on hypothetical extraction, which can be used to compute domestic value added in bilateral exports.”
- HOW GLOBAL ARE GLOBAL VALUE CHAINS? A NEW APPROACH TO MEASURE INTERNATIONAL FRAGMENTATION (2015, neutral): “This type of analysis suffers from the double-counting problems as studied by Koopman et al. (2014) as it is based on gross trade values.”
- Networks, Barriers, and Trade (2019, positive): “In explicitly accounting for the existence of intermediate inputs, our approach also speaks to how one can circumvent the double-counting problem and spill-overs arising from differences in gross and value-added trade, issues studied by Johnson and Noguera (2012) and Koopman et al. (2014).”
- Global Value Chains, National Innovation Systems and Economic Development (2018, neutral): “The same indicator has also been dubbed “backward-linkage indicator” (Kummritz and Quast 2016) or simply “foreign value added in exports” (Koopman et al 2014, Timmer et al 2014 and Foster‐McGregor, et al 2015).9 9 For caveats of using input-output tables for measuring the participation in GVCs see…”
- Offshoring and Labor Markets (2018, neutral): “Koopman, Wang, and Wei (2014) provide further refinement and generalization of measures.8 One common element in these studies is that the measurement of offshoring is based on national trade statistics, which is publically available and can be implemented for a large number of countries.”
- Measuring Smile Curves in Global Value Chains (2020, neutral): “Most of these papers, with the exception of Koopman et al. (2014), discuss the connections between their approaches and the approach of Hummels et al. (2001) in broad terms.”
- Networks of Value Added Trade (2017, neutral): “The initial contributions were those of Daudin et al. (2011), Johnson and Noguera (2012) and Koopman et al. (2014).”