Services Linkages and the Value Added Content of Trade

19 Pages Posted: 19 Jan 2016

See all articles by Joseph F. Francois

Joseph F. Francois

University of Bern - Department of Economics; Centre for Economic Policy Research (CEPR); Vienna Institute of International Economic Studies (WIIW); University of Adelaide - School of Economics

Miriam Manchin

University College London; Centro Studi Luca d'Agliano

Patrick Tomberger

Johannes Kepler University Linz

Date Written: November 2015

Abstract

Working with a set of global social accounting matrices spanning intermittent years from 1992 to 2011, this paper examines the services embodied in trade on a value added basis. Data include not only the direct and indirect contribution of services to value added contained in a given country's exports, but also the extent to which thirdÔÇÉcountry value added in services, through intermediate linkages of imported goods and services, is also embodied in production and trade. Our data indicate, in line with previous findings, that the ratio of value added to gross trade has been decreasing both for goods and for services, which is consistent with growing vertical production fragmentation. On the other hand, while value added in goods sectors including indirect exports is less than the gross value of exports, in services, it is greater, highlighting the service intensity of trade.

Suggested Citation

Francois, Joseph F and Manchin, Miriam and Tomberger, Patrick, Services Linkages and the Value Added Content of Trade (November 2015). The World Economy, Vol. 38, Issue 11, pp. 1631-1649, 2015. Available at SSRN: https://ssrn.com/abstract=2717227 or http://dx.doi.org/10.1111/twec.12307

Joseph F Francois (Contact Author)

University of Bern - Department of Economics ( email )

Schanzeneckstrasse 1
Bern, CH-3001
Switzerland

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Vienna Institute of International Economic Studies (WIIW) ( email )

Oppolzergasse 6
A-1010 Vienna
Austria

University of Adelaide - School of Economics ( email )

Adelaide SA, 5005
Australia
+61 8 8303 5540 (Phone)
+61 8 8223 1460 (Fax)

Miriam Manchin

University College London ( email )

Gower Street
London, WC1E 6BT
United Kingdom

Centro Studi Luca d'Agliano ( email )

Via Conservatorio 7
Milan, 20122
Italy

Patrick Tomberger

Johannes Kepler University Linz

Altenbergerstrasse 69
Linz, A4040
Austria

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