Trade in Value Added: Concepts, Estimation and Analysis

Marko Javorsek

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Global trade and economics Environmental Impact and Sustainability Global trade, sustainability, and social impact

Abstract

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.

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References

2009Input-output analysis foundations and extensions 2011GLOBAL VALUE CHAIN ANALYSIS: A PRIMER 2008How Much of Chinese Exports is Really Made In China? Assessing Domestic Value-Added When Processing Trade is Pervasive 2014Five Facts about Value-Added Exports and Implications for Macroeconomics and Trade Research 2013Mapping Global Value Chains 2011Give Credit Where Credit is Due: Tracing Value Added in Global Production Chains 2010How the iPhone Widens the United States Trade Deficit with the People's Republic of China 1995Asia-Pacific Economic Cooperation (APEC)

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