Measuring trade in value added with firm-level data

Measuring the Value Added by Money in Trade

The paper tests the proposition that money generates value in trade. It examines the data for 5,746 Russian companies for 1997 and finds that money accounts for 24.6 percent of their value-added. The functional form of the return on money in trade is determined to be positive and marginally declining. The paper imputes that Russian GDP lost 8.1 percent in 1997 because of diminished use of money...

Why countries trade Insights from firm-level data

Two theories dominate economic thinking on the causes of international exchange. Comparative advantage explains trade by inherent differences between countries. Increasing returns explains trade by the productivity and variety advantages from specialization and exchange even among like economies. But one-hundred-eighty years after the publication of Ricardo’s “Principles,” and two decades into ...

Measuring Value Added in the Pensions Industry

International Trade Effects of Value-Added Taxation

Trade Costs and Gravity for Gross and Value Added Trade

Cross-border production fragmentation enables countries to export domestic value added not only directly in the form of gross exports of final goods, but also indirectly by participating in global supply chains. This paper studies the determinants of trade in value added. I incorporate the global input-output structure into an international trade model to derive an approximate gravity equation ...