11,598 research outputs found

    Measuring trade in value added in the new industrial economy: statistical implications

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    Vertical integration of production processes at international level and the resulting fragmentation of the value chains increasingly question the relevance of traditional trade indicators. Intermediate productions are increasingly offshored within these global value chains, giving place to what is known as "trade in tasks". The paper presents some experiences of alternative measures of international trade in terms of the value added generated by this process. The strength with which the concept of value added has imposed itself as the yardstick for the measurement of international trade has very fruitful analytical implications in the context of national accounts. A second part shows how the international statistical system has responded to the obvious risk of obsolescence by launching a series of joint initiatives in order to adapt all the instruments of the statistician’s “tool-box”: classifications, balance of payments and national accounts manuals. Conclusions highlight the remaining challenges, as well as the divergences that persist among the groups of experts in relation to the proposed reforms and their normative and practical impacts.vertical integration; trade in tasks; national accounts

    Trade in value added: Concepts, estimation and analysis

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    This working paper introduces the concept of Trade in Value Added (TiVA) and presents an initial analysis of TiVA for selected regional ESCAP economies. The paper introduces Global Value Chains (GVCs) and issues for the measurement of trade statistics due to proliferation of GVCs. It further presents the TiVA estimation methodology, as defined in the literature, and provides an overview of the data requirements for estimation. The paper reviews current initiatives on regional / international input-output tables (IOTs) and TiVA analysis, and availability of data in the Asia-Pacific region. The paper concludes with a TiVA analysis of selected regional ESCAP economies that are available in the current data sources. The paper has been prepared under the Regional Programme on Economic Statistics (PRES) and we hope it will support the efforts of statistical offices in the region to improve related statistics

    THE MEASUREMENT OF INEQUALITY IN CANADIAN AND U.S. AGRICULTURAL INCOME BY COMPONENTS OF NET VALUE ADDED

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    This paper examines changes in net value added generated through Canadian and U.S. farm production, 1970-2000. We consider how the structural changes in Canadian and U.S. agriculture have affected the size and distribution of net value added and its components: rent, capital, labor, and to net farm income. We use the Theil Measure of Inequality (TMI) to compare and explain changes in 1) the between and within-region distribution of net value added, and 2) changes in the distribution of factor shares of net value added in Canada and in the U.S. Results show that in Canada (1960-2000), net value added has become somewhat more equally distributed relative to the number of farms per province, but has varied widely from 1972-1988. Between-region inequality in net value added accounted for from 0.5 to 85.5 percent of this inequality from 1960-2000. In the U.S. (1949-2000), net value added has become more unequally distributed. About half of the variation in net value added in the U.S. is due to between-region variation and about half to within-region variation in net value added. We find that most of the variation in the components of net value added (returns to capital, labor, nonoperator landlords, and to farm operators) in Canada and the United States is due to variations across regions, rather than to variations in the components of net value added themselves. These variations have generally been due to macroeconomic differences in regions, such as shifts in enterprise specialization, urbanization, changes in government programs, and to other structural changes in agriculture.Agricultural Finance,

    Value creation in mobile banking

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    The convergence of the Internet and mobile networks creates new opportunities and applications. Treating mobile business as simply an extension to the traditional web could result in missing out unique differentiated qualities for new value-added possibilities. Mobile Banking is considered to be one of the most value-added and important mobile service available. The current research examined technological changes in mobile networks and innovative attributes of Mobile Internet. It has advanced the theoretical framework of innovation in service to develop a customer centric analysis of mBanking value proposition. The article goes on to discuss critical factors in the diffusion of mBanking and explores reasons of failure and further prospects of success.Mobile Banking

    Trade in value added: An East Asian perspective

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    This paper aims to provide a non-technical explanation of the concept of trade in value added, with particular reference to East Asia. The trade in value added approach allows us to redefine the relationship between countries of origin and destination in international trade, and thereby addresses an important issue of measuring international trade in the face of growing production sharing among different countries. In contrast to the orthodox concept of trade balances based on foreign trade statistics, it focuses on the value added contents of a traded product, and considers each country's contribution to the value added generation in a production process

    Services and global value chains: Some evidence on servicification of manufacturing and services networks

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    This paper analyses the role of services in international trade through the lens of global value chains (GVCs). Services account for more than 70% of world GDP but only for around 20% of world trade in balance of payments terms. In value added terms, accounting for services embodied in exported goods, services account for 40% of world trade. However, the international supply of services is not only represented through cross-border transactions. Services are also traded through the movement of labour and capital. The latter contributes to the GDP of the domestic country. The services value added of foreign affiliates in selected EU countries account, on average, for a quarter of domestic services value added. The role of services as input into manufacturing production often termed servicification of manufacturing, is substantial with services value added accounting for almost a third of manufacturing exports in developed countries and 26% in developing economies. While the share of foreign services content in manufacturing exports is close to 12% in both developed and developing countries, the latter add significantly less domestic services value to their manufacturing exports. Services industries increasingly produce in networked or "fragmented" arrangements. The paper lays out conceptual and measurement issues related to services networks and provides evidence based on trade in value added statistics and on a case study on the film industry. In contrast 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 labour and capital, are required

    Measuring trade in value added with Firm-Level Data. NBB Working Paper No 378, November 2019

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    Global Value Chains have proliferated economic policy debates. Yet a key concept – trade in value added –is likely mismeasured because of sectoral aggregation bias stemming from reliance on inputoutput tables. This paper uses comprehensive firm-level data on both domestic and international transactions to study this bias. We find that sectoral aggregation leads to overstated trade in value added and, correspondingly, understated import content of gross exports. The economic magnitude of the estimated bias varies from moderate to large – at 2-5 p.p. of gross exports for Belgium and 17 p.p. for China. We study how the interplay between within-sector heterogeneities in firm import and export intensities and firm size determine the magnitude of the sectoral aggregation bias

    What are the implications for global value chains when the market shifts from the north to the south?

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    Rapid growth in many low-income economies was fuelled by the insertion of producers into global value chains feeding into high-income northern markets. This paper charts the evolution of financial and economic crisis in the global economy and argues that the likely outcome will be sustained growth in the two very large Asian Driver economies of China and India and stagnation in the historically dominant northern economies. Given the nature of demand in low-income southern economies, it is likely to be reflected in sustained demand for commodities, with other southern economy producers in global value chains being forced into lower levels of value added. Standards are likely to be of considerably reduced significance in value chains feeding into China and India

    Mobile Value Added Services: A Business Growth Opportunity for Women Entrepreneurs

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    Examines the potential for mobile value-added services adoption by women entrepreneurs in Egypt, Nigeria, and Indonesia in expanding their micro businesses; challenges, such as access to digital channels; and the need for services tailored to women

    Trade in value added: do we need new measures of competitiveness?

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    It has been argued that the increasing importance of global value chains necessitates a modification of conventional competitiveness measures. We compile a broad dataset including value added trade, gross exports and conventional and value added based real exchange rates. To sharply focus on external competitiveness, a new price competitiveness indicator is introduced, the TWULC (Trade Weighted Unit Labour Cost indicator). It weights sector-specific cost trends according to sector shares in exports. Econometric tests for a panel of 38 countries show that the focus on value added trade generally improves the explanatory power of export equations. Value added exports’ sensitivity towards real exchange rates is up to four times higher than that of gross exports. Real effective ex-change rates focusing on exporting industries and on value added weights yield more robust results across the specifications, but do not systematically outperform the more conventional measures of price of cost competitiveness
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