Global Production Sharing and Sino-US Trade Relations

Global production sharing and trade in the services of factors

This article develops an approach to measuring the factor content of trade when intermediate inputs are traded, and techniques differ for reasons such as factor price differences. An empirical section documents the importance of intermediates and shows that they mitigate cross-country differences in the factor content of finished goods. The performance of recent models of factor service trade i...

Sustainable Trade Relations in a Global Economy

This paper illustrates, how experimentation with a system dynamics model may be used to determine the terms of trade for meeting long term contentions for sustaining global economic relations and environment. It has two parts, a review of empirical evidence that describes the trends in the volume and the nature of international trade over the past decade, and an exploratory analysis of their im...

Global trade, food production and ecosystem support:

Global Production Networks and China’s Processing Trade

This paper unveils a systematic pattern in China’s processing trade. In a cross-section of Chinese provinces, the average distance traveled by processing imports (import distance) is negatively correlated to the average distance traveled by processing exports (export distance). To explain this pattern, we set up a three-country industry-equilibrium model in which heterogeneous firms from two ad...

Accounting for Intermediates: Production Sharing and Trade in Value Added∗

We combine input-output and bilateral trade data to quantify cross-border production linkages. Using a complete trading system, we compute bilateral trade in value added for 87 countries and regions. The ratio of value added to gross exports is a measure of the intensity of production sharing. Across sectors, manufacturing has a relatively low ratio and thus accounts for a smaller share of expo...