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1
From Trade in Goods to Trade in Tasks Regional
Networks in Global Supply Chains
Project progress report WTO/IDE-JETRO
2
Trade determinants
Tariffs
Trade-related infrastructure
Trade patterns
FDI
Trade in intermediate goods
Processing trade
New metrics of vertical trade TVA
Vertical specialization and domestic content of
exports (TVA)
3
MFN Applied Tariffs
Source World Tariff Profiles, 2010
4
Tariff Escalation in selected Asian
economies (percentage)
Source World Tariff Profiles, 2010
5
Source UNCTAD, 2010
6
Data Source World Bank Doing Business.
7
Regional share of FDI Inward and Outward Flows in
total World 1985, 1995 2008, (percentage).

Data Source UNCTAD, 2010.

Outward
Inward

8
Changes in business practices/strategies led to
the development of international outsourcing of
input goods or services

Outsourcing
Offshoring
9
The rise of processing trade - Some key figures
The importance of goods for inward processing in
developing economies total exports and imports
(minimum approximation), 2000-2008 (Billion, US
dollars)
Source IMF Balance of Payment statistics
partially completed with WTO estimates for
missing data.
10
Trends in world trade of total merchandise,
intermediate goods and other commercial services,
Index 1988 100
Source WTO and UN Comtrade database
11
Intermediate goods in trade flows reflect the
role of a country in the GSC
Source WTO and UN Comtrade database
12
Measuring value added and vertical specialization
an illustrative example
Source WTO
13
Why looking for new metrics of international
trade? Need to fill the information gap between
reality and available data

• Statistical issue Data relevance, i.e. the
  degree to which data meets reality
• Traditional measures (custom value, country of
  origin) could mislead What You See is No More
  What You Get
• Economic policy issue international trade
  policies hinge on the quality of the data used
• You cant manage what you cant measure quality
  of decisions is based on data
• Systemic issue Symbiotic relationship between
  statistics, research and policy
• Research and policy are limited by the
  availability of relevant and accurate statistics.
  
• Policy and academic theory create a need for
  statistics, determine its relevance and in turn,
  contribute to its quality
• Political issue economic and social effects of
  globalization
• GVCs have fuelled controversies without adequate
  data for the debate on
• Labour issues (industrial VA can track labour
  content and sectoral origin)
• Environment issues (direct transportation- or
  indirect as IO technical coefficients relate to
  production functions)

14
Using IIOs to estimate the import and domestic
content of exports

• International I-O (II-O)tables show the
  production and trade linkages by country and
  sector, origin and destination and how each
  country/sector's output is used, either as input
  into other sectors production or as final demand
• II-O tables allow to estimate the value of the
  imported inputs used directly and indirectly in
  the production of exported goods, and
• Cover both goods and services
• Tool for
• Identifying the sectoral source of the national
  value added imbedded in exports allowing further
  research on labour content, CO2 content,

15
Source WTO and IDE-JETRO
16
World Input-Output Table - Period 1995-2006 -
40 countries included (EU-15, NAFTA, BRI Brazil,
Russia, India CHN China, OTHER Turkey, Japan,
South Korea, Taiwan, Indonesia, Australia - 59
products (corresponding to CPA) - 35 industries
(corresponding to NACE Rev. 1) Business
functions/International Outsourcing - A new
European Survey on Business Functions Trade by
Enterprise Characteristics - Linkages of business
and trade registers to develop firm-level data on
import content of exports