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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

Revisiting Growth Accounting From a Trade in Value-Added Perspective

Global Manufacturing and International Supply Chains changed the way trade and international economics are understood today. The present essay builds on recent statistical advances to suggest new ways of looking at the demand and supply side approaches when Global Value Chains (GVCs) — articulating supply and demand chains from an international perspective-are taken into consideration. This pilot case focuses on the G-20 countries, a group of leading developed and developing economies which took a prominent role in fostering and managing global economic governance. The paper is organised into two independent parts. The demand dynamics is first analysed through a growth-accounting decomposition, then through the long term determinants of income elasticity of imports. The second part looks at the implications of global manufacturing for our understanding of the supply-side growth dynamics, privileging a trade perspective: the definition of comparative advantages and the potential for value-chain up-grading.

English

Keywords: competitiveness benchmarking, growth accounting, trade and development, revealed comparative advantages, import elasticity, Global value chains
JEL: F43: International Economics / Macroeconomic Aspects of International Trade and Finance / Economic Growth of Open Economies; F19: International Economics / Trade / Trade: Other; F14: International Economics / Trade / Empirical Studies of Trade; C67: Mathematical and Quantitative Methods / Mathematical Methods; Programming Models; Mathematical and Simulation Modeling / Input-Output Models; C18: Mathematical and Quantitative Methods / Econometric and Statistical Methods and Methodology: General / Methodological Issues: General; O11: Economic Development, Innovation, Technological Change, and Growth / Economic Development / Macroeconomic Analyses of Economic Development; F63: International Economics / Economic Impacts of Globalization / Economic Impacts of Globalization: Economic Development; O19: Economic Development, Innovation, Technological Change, and Growth / Economic Development / International Linkages to Development; Role of International Organizations; O47: Economic Development, Innovation, Technological Change, and Growth / Economic Growth and Aggregate Productivity / Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence; O57: Economic Development, Innovation, Technological Change, and Growth / Economywide Country Studies / Comparative Studies of Countries; O41: Economic Development, Innovation, Technological Change, and Growth / Economic Growth and Aggregate Productivity / One, Two, and Multisector Growth Models
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