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Project Description

Summary:  View help for Summary This paper proposes an accounting framework that breaks up a country's gross exports into various value-added components by source and additional double-counted terms. Our parsimonious framework bridges a gap between official trade statistics (in gross value terms) and national accounts (in value-added terms), and 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.

Scope of Project

JEL Classification:  View help for JEL Classification
      E01 Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
      E16 General Aggregative Models: Social Accounting Matrix
      F14 Empirical Studies of Trade
      F23 Multinational Firms; International Business
      L14 Transactional Relationships; Contracts and Reputation; Networks


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