Globalization and Trade Flows: What You See is Not What You Get!

World Trade Organization ERSD (Economic Research and Statistics Division) Staff Working Paper No. 2010-12

29 Pages Posted: 13 Aug 2010

See all articles by Andreas Maurer

Andreas Maurer

World Trade Organization (WTO)

Christophe Degain

World Trade Organization (WTO)

Date Written: June 22, 2010

Abstract

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.

Keywords: trade statistics, goods for processing, intra-firm trade, trade in intermediate products, trade in value added

JEL Classification: C49, F13, F23, F49

Suggested Citation

Maurer, Andreas and Degain, Christophe, Globalization and Trade Flows: What You See is Not What You Get! (June 22, 2010). World Trade Organization ERSD (Economic Research and Statistics Division) Staff Working Paper No. 2010-12, Available at SSRN: https://ssrn.com/abstract=1656826 or http://dx.doi.org/10.2139/ssrn.1656826

Andreas Maurer (Contact Author)

World Trade Organization (WTO) ( email )

Rue de Lausanne 154
Geneva 21, CH-1211
Switzerland
0041 22 7395507 (Phone)

Christophe Degain

World Trade Organization (WTO)

Rue de Lausanne 154
Geneva 21, CH-1211
Switzerland

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