Accounting for intermediates: Production sharing and trade in value added

Johnson, Robert C.; Noguera, Guillermo

doi:10.1016/j.jinteco.2011.10.003

Cited by 1,306 publications

(1,092 citation statements)

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“…We use the method proposed by Johnson and Noguera (2012) to quantify the flows of value added and embedded environmental assets between sending and receiving systems, and the method proposed by Wang et al (2013) to quantify these flows between sending systems and spillover systems (i.e., spillover flows). Johnson and Noguera (2012) provided the measure of value added exports (VAX), the value added produced in the source country and absorbed in the destination country.…”

Section: Methodsmentioning

confidence: 99%

“…Johnson and Noguera (2012) provided the measure of value added exports (VAX), the value added produced in the source country and absorbed in the destination country. The measure thus represents the net flow of value added from exporting to importing countries.…”

Section: Methodsmentioning

confidence: 99%

“…A2.1. On one hand, we used the original method presented in Johnson and Noguera (2012) to calculate the net flows of value added (i.e. the flows of VAX) from exporting to importing countries with socio-economic accounts of the WIOD, and then modified this method to calculate the net flows of embedded GHG emissions with environmental accounts.…”

Section: Appendix 1 Decomposition Of Gross Exports and Identificatiomentioning

confidence: 99%

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Trade in the telecoupling framework: evidence from the metals industry

Xiong¹,

Millington²,

Xu³

2018

E&S

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ABSTRACT. As a conceptual framework for understanding contemporary sustainability challenges, telecoupling emphasizes the importance of socioeconomic and environmental interactions over long distances. These long-distance interactions can occur through multiple human activities. We focus on international trade, a major channel of telecoupling flows, and in particular on the international trade of metals. We use the data of physical products and embedded greenhouse gas (GHG) emissions trade in the World Input-Output Database (WIOD) to quantitatively examine how countries contribute to both economic and environmental flows through the trade of metals, but also how that contribution varies depending on their position in the global value chain (GVC) of contemporary international trade. This analysis is built on previously developed techniques for decomposing gross exports of products, which we apply to examine embedded GHG emissions. We make comparisons between countries' contributions to flows of economic value versus embedded GHG emissions, but also examine contributions beyond total volumes of trade and bilateral trade. Specifically, we quantify the economic and environmental spillover effects that occur in contemporary international trade because of the GVC in which flows of intermediate goods form components in other subsequently traded goods. We interpret differences between countries' contributions to the flows of economic value versus embedded GHG emissions as being related to the intensity and efficiency of resource use during production. In turn, differences in contributions to direct trade flows versus spillover flows are related to their positions in the GVC. Subsequently, we discuss other elements of the telecoupling framework in trade, i.e., agents, causes, and effects. Quantitatively incorporating these telecoupling framework elements alongside spillover flows will enable investigation of dynamics and relationships that traditional trade theories, data, and models do not currently account for well. Key Words: global value chain; international trade; metal industry; telecoupling framework; world input-output database INTRODUCTIONThe conceptual framework of telecoupling (Liu et al. 2013(Liu et al. , 2015 highlights the importance of socioeconomic and environmental interactions over large distances for understanding contemporary sustainability challenges. The framework integrates five elements: coupled human and natural systems (CHANS), flows, agents, causes, and effects. Local interactions within CHANS are mediated by agents making decisions, with socioeconomic and environmental causes and effects. Furthermore, in the telecoupling framework, CHANS are the origin and destination of long-distance interactions, connected by material and information flows, and can be distinguished from those that are sending systems, those that are receiving systems, and those that are recipients of spillover flows from the interaction of other systems. As highlighted previously (e.g., Liu et al. 2013), longdistance telecou...

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Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

Section: Appendix 1 Decomposition Of Gross Exports and Identificatiomentioning

confidence: 99%

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Trade in the telecoupling framework: evidence from the metals industry

Xiong¹,

Millington²,

Xu³

2018

E&S

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“…Grossman & Rossi-Hansberg, 2008;Feenstra, 2010) and empirical considerations (e.g. Johnson & Noguera, 2012;Koopman, Powers, Wang & Wei, 2011Stehrer & Foster-McGragor, 2013;Timmer, Dietzenbacher, Los, Stehrer & de Vries, 2015;Negengast & Stehrer, 2016;Ambroziak, 2016aAmbroziak, , 2016b. The breakthrough in the studies of the international fragmentation of production was the preparation of the world input-output tables (discussed in more detail below) and making them available.…”

Section: Introductionmentioning

confidence: 99%

“…Therefore, bilateral balances in gross terms (computed on the basis of traditional statistics) can markedly differ from those in VA terms (calculated on the basis of VA statistics) (Johnson & Noguera, 2012). Thus, differences between trade balances computed in accordance with the two approaches will widen with the trading countries' engagement in global value chains.…”

Section: Introductionmentioning

confidence: 99%

Decomposition of Poland’s Bilateral Trade Imbalances by Value Added Content

Ambroziak

2017

EBER

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China and the World Trading System

Mattoo¹,

Subramanian²

2013

The World Economy

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The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

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Accounting for intermediates: Production sharing and trade in value added

Cited by 1,306 publications

References 18 publications

Trade in the telecoupling framework: evidence from the metals industry

Trade in the telecoupling framework: evidence from the metals industry

Decomposition of Poland’s Bilateral Trade Imbalances by Value Added Content

China and the World Trading System

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