The Great Collapse in Value Added Trade
By: Nagengast, Arne J.
Contributor(s): Stehrer, Robert
.
Material type: 
BookSeries: wiiw Working Papers: 112Publisher: Wien : Wiener Institut für Internationale Wirtschaftsvergleiche (wiiw), 2015Description: 22 S., 7 Tables and 3 Figures, 30cm.Subject(s): great trade collapse | vertical specialisation | trade in value added | input-output tables | structural decomposition analysisCountries covered: non specificwiiw Research Areas: Macroeconomic Analysis and Policy | International Trade, Competitiveness and FDIClassification: F1 | F2 | C67 | R15 Online resources: Click here to access online Summary: This paper studies the great collapse in value added trade using a structural decomposition analysis. We show that changes in vertical specialisation accounted for almost half of the great trade collapse, while the previous literature on gross trade has mainly focused on final expenditure, inventory adjustment and adverse credit supply conditions. The decline in international production sharing during the crisis may partially account for the observed decrease in global trade elasticities in recent years. Second, we find that the drop in the overall level of demand accounted for roughly a quarter of the decline in value added exports while just under one third was due to compositional changes in final demand. Finally, we demonstrate that the dichotomy between services and manufacturing sectors observed in gross exports during the great trade collapse is not apparent in value added trade data.
| Item type | Current library | Call number | Status | Date due | Barcode | |
|---|---|---|---|---|---|---|
| Paper | WIIW Library | 5.700/112 (Browse shelf(Opens below)) | Available | 1000010003585 |
This paper studies the great collapse in value added trade using a structural decomposition analysis. We show that changes in vertical specialisation accounted for almost half of the great trade collapse, while the previous literature on gross trade has mainly focused on final expenditure, inventory adjustment and adverse credit supply conditions. The decline in international production sharing during the crisis may partially account for the observed decrease in global trade elasticities in recent years. Second, we find that the drop in the overall level of demand accounted for roughly a quarter of the decline in value added exports while just under one third was due to compositional changes in final demand. Finally, we demonstrate that the dichotomy between services and manufacturing sectors observed in gross exports during the great trade collapse is not apparent in value added trade data.
Click on an image to view it in the image viewer