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Services Linkages and the Value Added Content of Trade
Author(s) -
Francois Joseph,
Manchin Miriam,
Tomberger Patrick
Publication year - 2015
Publication title -
the world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.594
H-Index - 68
eISSN - 1467-9701
pISSN - 0378-5920
DOI - 10.1111/twec.12307
Subject(s) - value (mathematics) , goods and services , economics , fragmentation (computing) , trade in services , production (economics) , international trade , added value , final demand , global value chain , service (business) , tertiary sector of the economy , international economics , business , trade barrier , microeconomics , comparative advantage , economy , macroeconomics , mathematics , statistics , computer science , operating system
Working with a set of global social accounting matrices spanning intermittent years from 1992 to 2011, this paper examines the services embodied in trade on a value added basis. Data include not only the direct and indirect contribution of services to value added contained in a given country's exports, but also the extent to which third‐country value added in services, through intermediate linkages of imported goods and services, is also embodied in production and trade. Our data indicate, in line with previous findings, that the ratio of value added to gross trade has been decreasing both for goods and for services, which is consistent with growing vertical production fragmentation. On the other hand, while value added in goods sectors including indirect exports is less than the gross value of exports, in services, it is greater, highlighting the service intensity of trade.