Competition for Global Value Added: Export and Domestic Market Shares

41 Pages Posted: 10 Jun 2017

See all articles by Rafael Cezar

Rafael Cezar

Banque de France

Duguet Adrien

Banque de France

Guillaume Gaulier

Banque de France

Vincent Vicard

Centre d'Etudes Prospectives et d'Info. Internationales (CEPII)

Date Written: april 2017

Abstract

We propose a new “global” market share indicator that complements the traditional export market share analysis by accounting for the foreign value added embodied in the production process and for the performance of national firms on their domestic market. We also consider all the income from activities used in the production to address the manufacturing final demand, namely all activities within the manufacturing value chain. Our results show that the role of services is growing in global value chains. Interestingly, considering our global indicator makes the dynamics of market shares converge among large economies, which can be explained by a de-correlation between national and export performances. This de-correlation appears to reflect greater specialization within global manufacturing value chains.

Keywords: nternational trade, Market share, Value added, Global value chains, Globalization, Manufacturing industry

JEL Classification: F10, F60, L60

Suggested Citation

Cezar, Rafael and Adrien, Duguet and Gaulier, Guillaume and Vicard, Vincent, Competition for Global Value Added: Export and Domestic Market Shares (april 2017). Banque de France Working Paper # 628. Available at SSRN: https://ssrn.com/abstract=2983674 or http://dx.doi.org/10.2139/ssrn.2983674

Rafael Cezar

Banque de France ( email )

Paris
France

Duguet Adrien

Banque de France ( email )

Paris
France

Guillaume Gaulier (Contact Author)

Banque de France ( email )

Paris
France

Vincent Vicard

Centre d'Etudes Prospectives et d'Info. Internationales (CEPII) ( email )

20, avenur de Ségur
Paris Cedex 07, F-75334
France

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