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Open Access
Article
Publication date: 31 December 2015

Shih-Mo Lin and Hong Linh Dinh

This paper applies the decomposition method proposed by Wang et al. (2013), together with the multi-national input-output tables from World Input-Output Database (WIOD) to…

Abstract

This paper applies the decomposition method proposed by Wang et al. (2013), together with the multi-national input-output tables from World Input-Output Database (WIOD) to estimate the value-chain transition in East Asian production network. Specifically, we calculate and examine the domestic value-added absorbed abroad, foreign value-added embodied in country’s gross exports, and vertical specialization measures to explore the relative positions of major East Asian countries in the global production chain over the period of 1995-2011. The analyses are at country-aggregate, country-sector, bilateral-aggregate and bilateral-sector levels. Based on our results, we answer the important question of whether Taiwan and South Korea have used China’s production chains as an intermediary to re-export their products to other countries in the world. Furthermore, we answer the question that over the 1995-2011 periods, have Taiwan and South Korea exploited cheap labor from China to add value to their products before re-exported them to the rest of the world?

Details

Journal of International Logistics and Trade, vol. 13 no. 3
Type: Research Article
ISSN: 1738-2122

Keywords

Open Access
Article
Publication date: 28 August 2023

Enrique Feás

The purpose of this paper is to settle the methodological debate on the decomposition of value added in gross exports, proposing a standard, exposing the drawbacks of the…

Abstract

Purpose

The purpose of this paper is to settle the methodological debate on the decomposition of value added in gross exports, proposing a standard, exposing the drawbacks of the alternatives and quantifying the differences.

Design/methodology/approach

This paper systematizes the analytical framework and assesses and quantifies the various methodologies and its main differences.

Findings

The decomposition method of Borin and Mancini (2023), using a source-based approach and an exporting country perspective, should be considered as the standard for decomposing the value added in gross exports. This study finds that alternative approaches and perspectives are methodologically inferior, and that tailored perspectives do not provide an increase in accuracy that compensates their drawbacks.

Originality/value

This paper’s contribution is fourfold: it rejects the alleged equivalence between approaches and perspectives, defending the superiority of a particular method, approach and perspective; it gives quantitative examples of the differences between them; it proves that the drawbacks of tailored perspectives do not compensate their alleged accuracy (as they do not result in big quantitative differences with the standard perspective); and it argues that no valid standard decomposition can forego the calculation of value added exported, which requires the expression of exports in terms of final demand.

Details

Applied Economic Analysis, vol. 31 no. 93
Type: Research Article
ISSN: 2632-7627

Keywords

Open Access
Article
Publication date: 20 March 2024

Raúl Vázquez-López

The main goal of this paper is to examine the evolution of Latin American productive integration in terms of the regional value added incorporated in intra-regional exports of…

Abstract

Purpose

The main goal of this paper is to examine the evolution of Latin American productive integration in terms of the regional value added incorporated in intra-regional exports of Argentina, Brazil, Chile, Colombia, Mexico and Peru. In addition, the study traces the trade and productive integration trajectories for each of these countries from 1995 to 2015.

Design/methodology/approach

Based on the use of OECD’s global ICIO input-output tables, this paper applies the methodological framework by Wang et al. (2018) for the analysis of trade flows at the bilateral level, which allows breaking down the value of gross exports of each sector-country, depending on the origin of the value added contained in exports, as well as their use.

Findings

The estimates show very low shares of value added from regional partners in the intra-regional exports of the countries studied. Conversely, the weight of the value added incorporated in these exports by countries outside the region has increased in tandem with China’s expanding involvement in Latin America. This development, along with the downward trend in domestic value added incorporated in exports, indicates a lack of a regional integration process of any depth.

Originality/value

This article addresses an economic problem of conventional importance from a global value chain perspective using a novel methodology based on the use of global input–output tables.

Details

Journal of Economics, Finance and Administrative Science, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2077-1886

Keywords

Open Access
Article
Publication date: 16 May 2023

Sabina Szymczak, Aleksandra Parteka and Joanna Wolszczak-Derlacz

The study aims to examine the joint effects of foreign ownership (FO) and involvement in global value chains (GVCs) on the productivity performance of firms from a catching-up…

2942

Abstract

Purpose

The study aims to examine the joint effects of foreign ownership (FO) and involvement in global value chains (GVCs) on the productivity performance of firms from a catching-up country (Poland) and a leader economy (Germany).

Design/methodology/approach

The authors use micro-level data on firms combined with several sector-level GVC participation measures. The authors investigate whether the link between productivity and the overall sectoral degree of involvement in global production structures depends on a firm's ownership. The authors verify the robustness of the obtained results by using an instrumental variables approach and weighted regression.

Findings

The results show that domestically owned firms are less productive than foreign ones, which is particularly true at low GVC participation levels. However, as GVC involvement increases, the FO productivity premium decreases, leading to productivity catching up between foreign and domestically owned firms. This mechanism is similar in Poland and Germany. However, in the leader country (Germany), the productivity performance of domestically owned firms is more stable along the distribution of GVC involvement.

Originality/value

This study contributes to the foreign direct investment (FDI)–productivity literature by comparing the catching-up and developed countries' perspectives and incorporating the productivity–GVC relationship into the FDI analysis. The authors show that the FO premium is not confined to the developing context but is also present in a leader country. Moreover, the link between productivity and the overall sectoral degree of involvement in global production structures depends on a firm's ownership.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Open Access
Article
Publication date: 20 June 2023

Françoise Okah Efogo and Boniface Ngah Epo

This paper appraises the effects of monetary policy on trade in value-added (TiVA) using a panel of 38 developing countries spanning the period 1990 to 2019. Specifically, the…

Abstract

Purpose

This paper appraises the effects of monetary policy on trade in value-added (TiVA) using a panel of 38 developing countries spanning the period 1990 to 2019. Specifically, the authors subsequently summon the theory of trade in intermediate products within the New Keynesian framework for open economies that comprises price rigidity to verify this relationship and thereon control for robustness by correcting for endogeneity and unbalanced panel effect.

Design/methodology/approach

The authors mobilize the within estimator corrected for cross sectional dependence as well as the two-stage-least squares fixed effect estimator which corrects for endogeneity. For robustness, the authors also use the Hausman–Taylor estimator to control for endogeneity and random effects in annualized data and the least squares dummy variable corrected estimator.

Findings

Results suggest that the monetary policy instruments such as inflationary gaps and anticipatory inflationary outcomes significantly affect TiVA in developing countries only in the short term with no long-term effect. In addition to contributing to the scanty empirical literature, the authors provide relevant insights on monetary policy tools that can be mobilized in fashioning a global value chain penetration and upgrading strategies.

Originality/value

The authors convoke the theory of trade in intermediate products casted into the New Keynesian framework comprising price rigidity to verify the relationship between TiVA and monetary policy (b) verify for robustness by correcting for endogeneity and unbalanced panel effect.

Details

Journal of International Logistics and Trade, vol. 21 no. 3
Type: Research Article
ISSN: 1738-2122

Keywords

Open Access
Article
Publication date: 11 April 2024

Shiwen Gu and Inkyo Cheong

In this paper, we evaluated the impact of the US “Chip Act” on the participation of the Chinese electronics industry in the global value chain based on the dynamic CGE model. This…

Abstract

Purpose

In this paper, we evaluated the impact of the US “Chip Act” on the participation of the Chinese electronics industry in the global value chain based on the dynamic CGE model. This is a meaningful attempt to use the GTAP-VA model to analyze the electronics industry in China.

Design/methodology/approach

We employ a Dynamic GTAP-VA Model to quantitatively evaluate the economic repercussions of the “Chip Act” on the Chinese electronic industries' GVC participation from 2023 to 2040.

Findings

The findings depict a discernible contraction in China’s electronic sector by 2040, marked by a −2.95% change in output, a −3.50% alteration in exports and a 0.45% increment in imports. Concurrently, the U.S., EU and certain Asian economies exhibit expansions within the electronic sector, indicating a GVC realignment. The “Chip Act” implementation precipitates a significant divergence in GVC participation across different countries and industries, notably impacting the electronics sector.

Research limitations/implications

Through a meticulous temporal analysis, this manuscript unveils the nuanced economic shifts within the GVC, substantially bridging the empirical void in existing literature. This narrative accentuates the profound implications of policy regulations on global trade dynamics, contributing to the discourse on international economic policy and industry evolution.

Practical implications

We evaluated the impact of the US “Chip Act” on the participation of the Chinese electronics industry in the global value chain based on the dynamic CGE model. This is a meaningful attempt to use the GTAP-VA model to analyze the electronics industry in China.

Social implications

The interaction between policy regulations and global value chain (GVC) dynamics is pivotal in understanding the contemporary global trade framework, especially within technology-driven sectors. The US “Chips Act” represents a significant regulatory milestone with potential ramifications on the Chinese electronic industries' engagement in the GVC.

Originality/value

The significance of this paper is that it quantifies for the first time the impact of the US Chip Act on the GVC participation index of East Asian countries in the context of US-China decoupling. With careful consideration of strategic aspects, this paper substantially fills the empirical gap in the existing literature by presenting subtle economic changes within GVCs, highlighting the profound implications of policy regulation on global trade dynamics.

Details

Journal of International Logistics and Trade, vol. 22 no. 1
Type: Research Article
ISSN: 1738-2122

Keywords

Open Access
Article
Publication date: 27 September 2023

Markus Brummer, Karl Jakob Raddatz, Matthias Moritz Schmitt, Georg Schlick, Thomas Tobie, Rüdiger Daub and Karsten Stahl

Numerous metals can be processed using the additive manufacturing process laser-based powder bed fusion of metals (PBF-LB/M, ISO/ASTM 52900). The main advantages of additive…

Abstract

Purpose

Numerous metals can be processed using the additive manufacturing process laser-based powder bed fusion of metals (PBF-LB/M, ISO/ASTM 52900). The main advantages of additive manufacturing technologies are the high degree of design freedom and the cost-effective implementation of lightweight structures. This could be profitable for gears with increased power density, combining reduced mass with considerable material strength. Current research on additively manufactured gears is focused on developing lightweight structures but is seldom accompanied by simulations and even less by mechanical testing. There has been very little research into the mechanical and material properties of additively manufactured gears. The purpose of this study is to investigate the behavior of lightweight structures in additively manufactured gears under static loads.

Design/methodology/approach

This research identifies the static load-carrying capacity of helical gears with different lightweight structures produced by PBF-LB/M with the case hardening steel 16MnCr5. A static gear loading test rig with a maximum torque at the pinion of T1 = 1200 Nm is used. Further focus is set on analyzing material properties such as the relative density, microstructure, hardness depth profile and chemical composition.

Findings

All additively manufactured gear variants show no failure or plastic deformation at the maximum test load. The shaft hub connection, the lightweight hub designs and the gearing itself are stable and intact regarding their form and function. The identified material characteristics are comparable to conventionally manufactured gears (wrought and machined), but also some particularities were observed.

Originality/value

This research demonstrates the mechanical strength of lightweight structures in gears. Future research needs to consider the dynamic load-carrying capacity of additively manufactured gears.

Details

Rapid Prototyping Journal, vol. 29 no. 11
Type: Research Article
ISSN: 1355-2546

Keywords

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