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Measures of participation in global value chains and global business cycles

Author: Zhi Wang, (International economist); Shang-Jin Wei; Xinding Yu; Kunfu Zhu; National Bureau of Economic Research,
Publisher: Cambridge, Mass. : National Bureau of Economic Research, 2017.
Series: Working paper series (National Bureau of Economic Research), no. 23222.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Summary:
This paper makes two methodological contributions. First, it proposes a framework to decompose total production activities at the country, sector, or country-sector level, to different types, depending on whether they are for pure domestic demand, traditional international trade, simple GVC activities, and complex GVC activities. Second, it proposes a pair of GVC participation indices that improves upon the measures  Read more...
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Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Zhi Wang, (International economist); Shang-Jin Wei; Xinding Yu; Kunfu Zhu; National Bureau of Economic Research,
OCLC Number: 975490926
Notes: "March 2017"
Description: 1 online resource (34 pages) : illustrations.
Series Title: Working paper series (National Bureau of Economic Research), no. 23222.
Responsibility: Zhi Wang, Shang-Jin Wei, Xinding Yu, Kunfu Zhu.

Abstract:

This paper makes two methodological contributions. First, it proposes a framework to decompose total production activities at the country, sector, or country-sector level, to different types, depending on whether they are for pure domestic demand, traditional international trade, simple GVC activities, and complex GVC activities. Second, it proposes a pair of GVC participation indices that improves upon the measures in the existing literature. We apply this decomposition framework to a Global Input-Output Database (WIOD) that cover 44 countries and 56 industries from 2000 to 2014 to uncover evolving compositions of different production activities. We also show that complex GVC activities co-move with global GDP growth more strongly than other types of production activities.

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