Value-added share and elasticity of trade to barriers

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 ...

International Trade Effects of Value-Added Taxation

Policy options for value added to different levels of production

This paper presents an analytic procedure for the value added to different production levels with different policy options. The approach is stochastic and thus provides a framework for informed decision-making on productivity growth under uncertainty conditions. The model was applied to data collected from a firm and re-sults recommend that the firm should redevelop if in diversification and sy...

Value-Added Taxes and International Trade: The Evidence

This paper examines the effect of value-added taxes (VATs) on international trade. Destination-based VATs are commonly thought to encourage exports, since exports are exempt from tax while imports are taxed. Economic theory implies that exchange rate adjustment prevents destination-based VATs from affecting exports and imports, since exchange rate appreciation completely undoes the effects of i...

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...