Networks of Value‐added Trade

João Amador; Sónia Cabral

doi:10.1111/twec.12469

journal article Oct 31, 2016

Networks of Value‐added Trade

João Amador Sónia Cabral

The World Economy Vol. 40 No. 7 pp. 1291-1313 · Wiley

View at Publisher Save 10.1111/twec.12469

Abstract

AbstractGlobal value chains (GVCs) require new methods for evaluating interconnections among countries, which can no longer be accurately appraised by standard bilateral gross trade flows. This paper uses tools of network analysis to examine the evolution of value‐added trade from 1995 to 2011. GVCs are very centralised and asymmetric networks, with a few large economies acting as hubs, which exposes them to the propagation of idiosyncratic shocks. As GVCs expanded, the networks of foreign value added in exports became denser, more complex and intensively connected. The regional dimension of GVCs is still dominant but is progressively giving place to a more global network. Networks of foreign value added in goods exports outpace those of services exports. However, foreign inputs of services are important for exports of both goods and services. There is a striking rise of China as a supplier of value added, while Germany and the United States maintain a central role in GVCs over the whole period.

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Details

Published: Oct 31, 2016
Vol/Issue: 40(7)
Pages: 1291-1313
License: View

Authors

J

João Amador

Economics and Research Department Banco de Portugal Lisboa Portugal; Nova School of Business and Economics Lisboa Portugal

S

Sónia Cabral

Economics and Research Department Banco de Portugal Lisboa Portugal

Cite This Article

João Amador, Sónia Cabral (2016). Networks of Value‐added Trade. The World Economy, 40(7), 1291-1313. https://doi.org/10.1111/twec.12469

Networks of Value‐added Trade

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