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TOPIC:
MEASURING WHAT MATTERS IN GLOBAL VALUE CHAIN AND VALUE-ADDED TRADE
ABSTRACT
Following the spread of global value chains new statistical tools, the Inter-Country Input-Output tables, and new analytical frameworks have been recently developed to provide an adequate representation of supply and demand linkages between economies. Previous contributions have significantly improved the investigation into the value-added composition of gross trade flows and its relationship with final demand. However, several relevant questions have not yet been addressed since bilateral exporter-importer relations and the sectoral dimension of trade flows have not been properly taken into account so far. This paper proposes new methodologies for value-added accounting of trade flows at bilateral and sectoral level that can be used to investigate several empirical questions, including the assessment of the share of trade related to global value chains. We argue that different empirical issues require distinct methodological approaches and measures. In this way, we can bring together a large part of the related literature under one comprehensive framework; we also show the conceptual drawbacks that affect some of the other contributions which do not fully fit into this framework.
Keywords: Inter-country input-output tables; Trade in value-added; Global value chains; Comprehensive framework