Open Access. Powered by Scholars. Published by Universities.®

Macroeconomics Commons

Open Access. Powered by Scholars. Published by Universities.®

Industrial Organization

Dartmouth College

Articles 1 - 1 of 1

Full-Text Articles in Macroeconomics

Five Facts About Value-Added Exports And Implications For Macroeconomics And Trade Research, Robert C. Johnson Jan 2014

Five Facts About Value-Added Exports And Implications For Macroeconomics And Trade Research, Robert C. Johnson

Open Dartmouth: Faculty Open Access Scholarship

Due to the rise of global supply chains, gross exports do not accurately measure the amount of value added exchanged between countries. I highlight five facts about differences between gross and value-added exports. These differences are large and growing over time, currently around 25 percent, and manufacturing trade looks more important, relative to services, in gross than value-added terms. These differences are also heterogenous across countries and bilateral partners, and changing unevenly across countries and partners over time. Taking these differences into account enables researchers to obtain better quantitative answers to important macroeconomic and trade questions. I discuss how the ...