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Trade flows, either measured as gross trade or flows of value-added, tend to be less sensitive to trade barriers in industries that feature a greater share of value-added in its product. Gross trade is, in general, more sensitive to trade barriers than the trade in value-added does. The differences between the elasticities of gross trade and value-added trade with respect to distance tend to be smaller for industries with a higher share of value-added in its product.

Value-added share and elasticity of trade to barriers