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WTO Working Papers

WTO working papers usually represent research in progress. Such research may be conducted in the preparation of WTO Secretariat reports, studies or other material for WTO members. The papers are circulated for comment because the WTO considers critical review of professional research to be extremely important.

English

Globalization and Trade Flows

What you See is Not What you Get!

The trade collapse that followed the recent financial crisis has led to a renewed interest on the measurement issues affecting international merchandise trade statistics in the new globalized economy. The international fragmentation of industrial production blurs the concept of country of origin and calls for the production of new statistics on the domestic content of exports, with a view of estimating trade in value added. Alongside, the international statistical community has revised in 2010 the concepts and definitions on both, international merchandise trade and trade in services statistics. This paper discusses the various issues related to the concepts of "goods for processing" and "intra firm trade" in trade statistics, and provides an overview of the method of analysing the impact of the fragmentation of production in international value chains.

English

Keywords: trade in intermediate products, trade statistics, trade in value added, intra-firm trade, goods for processing
JEL: F23: International Economics / International Factor Movements and International Business / Multinational Firms; International Business; C49: Mathematical and Quantitative Methods / Econometric and Statistical Methods: Special Topics / Econometric and Statistical Methods: Special Topics: Other; F13: International Economics / Trade / Trade Policy; International Trade Organizations; F49: International Economics / Macroeconomic Aspects of International Trade and Finance / Macroeconomic Aspects of International Trade and Finance: Other
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