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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?

The new concept of business partner behavior sharing practice is addressed from three perspectives: technical/technological, legal and ethical/moral with the aim to elaborate its sharing feasibility, value added, legal restrictions and moral considerations. Research results are synthetized to present an overview on business partners behavior sharing direct and indirect value added, costs and risks and proposing mitigation strategies. The paper aims to discuss these issues.

To evaluate technical feasibility, a real-life sharing experiment is conducted. Using a sharing agency data are collected, summarized and reported. For the purpose of legal evaluation, relevant legislation is analyzed. Ethicality/morality is assessed utilizing theoretical applied-ethics analysis. Two major normative moral theories – teleology and deontology – are selected for this purpose. The synthesis of the research results is represented in system dynamics model.

Results show no significant technical obstacles for the systematic business partner behavior sharing. Also, no major legal or ethical arguments against it are found, although some important conditions are identified that have to be met in order for the practice to be performed legally and to be qualified as ethical/moral.

Analysis of legality is limited to the EU and legislation of the Republic of Slovenia. Ethicality of the practice is assessed from the utilitarian and rights perspectives.

Important technical, legal and ethical insights into business partner behavior sharing concepts and practices are provided.

To the authors’ knowledge, this is the first time that the practice of business partner behavior sharing is addressed simultaneously from technical, legal and ethical perspectives using a real-life experiment. Therefore it is an important contribution to a more holistic account/insight of/into such a business practice.

Both the academic literature and practitioners have long noted the need for an equity investment mechanism for worker-controlled firms that alleviates investor anxieties without undermining internal workplace democracy. The purpose of this paper is to outline one such possible mechanism.

The proposal locks together the interests of workers and external investors, via non-voting shares with dividends set by a pre-agreed value-added sharing formula. Each worker is paid a base wage, with the average across the firm being a pre-defined multiple of the national minimum wage. Any additional surplus is split into a number of equal “slices”, with each share receiving one slice as its dividend, and the average worker receiving a pre-agreed number of slices as a bonus.

Workers have an incentive to maximise their own incomes, and in so doing, will also automatically maximise the dividends received by investors, obviating the need for the shares to have normal voting rights. Working on this principle of aligned interests, the authors also discuss reinvestment, worker ownership of non-voting shares and possibilities for a secondary share market. The authors show how this proposal will be a significant step in aligning the interests of investors with owner-workers in a democratic, negotiated way that shares both risk and returns, thus making worker-controlled firms more attractive to equity investment.

In light of the recognised problem of underinvestment in worker-controlled firms and the risk of their degeneration, this paper will interest both academics and practitioners in employee ownership, co-operatives and various forms of workplace democracy.

This paper aims to explain a new system of accounting for partnership financing that applies in Rastin profit and loss sharing banking. In this system, the interest rate is not used in calculations and accounting, and instead, the “time value” of capital based on the amount and duration of the partnership is used.

Rastin Partnership Accounting principles have been founded on off-balance-sheet items and on the basis of the institutions’ obligations to the depositors and receivers of financial resources, and they are in compliance with the nature of the financial intermediary activity (a partnership of depositor in the yields of the fund receiver via the bank).

The distribution of profit among stakeholders (including workforce and capital owners) is accomplished according to the share of each beneficiary in the created value added. In this regard, Euler’s theorem, as the best mathematical-economic innovation for distribution of income is applied.

This system is novel, and it is required to be more elaborated for further practical development and adjustment.

In this accounting system, the return of the partnership is distributed among sharers based on the amount and duration of their partnership. The penalty for delay in payment is calculated from the amount of the incurred loss due to negligence or blameworthy of the undertaker and not upon a penalty interest rate.

Interest rate as an essential factor in conventional accounting is not usable in Islamic banking and other similar institutions that work based on partnership, such as mutual funds and saving and loan associations. The proposed system removes this shortage and is fairer than the conventional accounting.

Approach of this accounting system is fully different from the conventional accounting because of intrinsic characteristics of the intermediary role of financial partnership institutions and Islamic banks.

The purpose of this paper is to examine various aspects of regional and global production networks, with a special focus on China.

The author studies four different approaches to measure production networks and discuss their strengths and weaknesses. The author presents some of the results associated with some of these measurements.

The author finds that using trade data alone is simple but incomplete. Bringing in input–output tables is useful but much more data would be needed. In addition, for the case of China, electronic goods and telecommunication goods tend to have a higher foreign value added.

Data with good quality can be a problem. The authors also have difficulty getting input–output tables for many years.

The results can guide policymakers as to which industries can create more domestic value added. The results can also lead to betting of an understanding of trade balances measured in the value added.

The results can generate further understanding among citizens of many different countries, including China, about the importance of different sectors in generating the value added.

The value of this paper is to focus on alternative ways to measure the value added in exports from China. The paper is the first to discuss the strengths and weaknesses of different approaches and present some of these results.

The purpose of this paper is to explore the value added of exports of services, which increasingly involve intermediate inputs to manufacturing and are indirectly embodied in intermediate and finished good exports to the global market earned by Taiwan and South Korea.

This paper uses the World Input-Output Database to examine and compare the competitiveness of service industry between Taiwan and South Korea in China from 1995 to 2011. The author measures the value added of export in two ways: value added in trade (VAiT) and trade in value added (TiVA).

The proportion of domestic (intermediate and final demand) VAiT was created by Taiwanese and South Korean exports to China. The services amount share of value added embodied in Taiwanese electrical and optical equipment (ELE) exports to China increased gradually (38.0–45.7 percent) from 1996 to 2011, that was more than that of South Korea (26.7–23.3 percent). Taiwanese financial and business (F&B) service contributed to Taiwanese ELE production exported to China. In service sectors, the proportion of VAiT of Taiwanese F&B service embodied in ELE exports to China increased annually (9.8–11.5 percent), that was similar to that of South Korea (12.2–11.3 percent). Thus, F&B sector played an increasingly important role in service sectors. Taiwanese F&B promotes the ELE export to China with higher efficiency than South Korea does.

Over the past two decades, the development of information technology and the growth of international specialization and fragmentation of production processes have brought about a global value chains (GVCs) phenomenon in services, which has already been taking place in manufacturing for a long time. Intangible value added of services increasingly involved intermediate inputs from manufacturing and were indirectly embodied in intermediate and finished goods exported to the global market. The focus of this paper is to analyze how the service industry participates in the development of the GVC, with emphasis on the export of ELE production to China in the bilateral trade of Taiwan and Korea with China. In addition to the value-added components, the exports of F&B intermediate products to China have been increasing year by year, and Taiwanese is higher than South Korean. In the bilateral trade between Taiwan or Korea and China, for ELE production exported to China, double counted part of intermediate products is increasing year by year. In terms of the value added of the double counting of F&B exports to China, Taiwan is higher (PDC, 31.23–17.26 percent) than South Korea. (PDC, 8.7–15.12 percent). South Korea and China are not as closely related as Taiwan and China.

Fluctuations of oil price and petroleum products have had different effects on great economic variables. One of these cases would be Dutch Disease in some countries. The aim of this paper is to investigate the effect of price fluctuation on the amount of industrial and agricultural value added in GDP and the amount of non‐oil GDP in Iran by using counteraction method separately.

The effect of oil volatility and the share of agricultural value added and the share of manufacturing value added in GDPs as well as the share of agricultural and manufacturing value added in non‐oil GDP have been studied by using time‐series estimations method. In all of the cases the Eviews 5 software was used during the period 1979‐2009.

While research results support previous studies about the relationship between the agricultural sector and oil revenues in the developing and oil‐exporting countries, the results show a relationship between oil price and the share of manufacturing value added with no‐oil GDP.

The paper has considered only oil price fluctuation on industrial and agricultural products in Iran. However, Iran has several exporting goods such as gas but the study only considered oil price.

So far, several studies have been conducted in different countries regarding the subject of the study. While Iran is an important oil exporting country, the current research is the first study in Iran which gives more strength to the Iranian economy as well to other oil exporting countries.

This study aims to examine the effect of structural transformation on poverty alleviation in Sub-Saharan Africa (SSA) countries with a higher share of services as a percentage of gross domestic product (GDP). The study specifically focuses on the value-added share as a percentage of GDP in the agricultural, manufacturing, industrial, and service sectors using time series data from 1988 to 2019.

The study utilizes the autoregressive distributive lag (ARDL) bound test framework for estimation, based on the conclusions drawn from the augmented Dickey-Fuller and Phillips–Perron unit root tests, which provide evidence of a mixed order of integration.

The result reveals that agriculture value-added (AVA), manufacturing value-added (MVA), industrial value-added (IVA), and services value-added (SVA) have a positive and significant impact on poverty alleviation in both the short and long run. However, the agriculture sector is found to be more effective in reducing poverty compared to the other sectors examined in this study. Additionally, this study challenges the notion that SSA countries have undergone an immature structural transformation. Instead, it reveals a pattern of stagnant structural transformation, as indicated by the lack of growth in the industrial and manufacturing value-added shares of GDP.

To enhance productivity and reduce poverty, SSA economies should adopt a development strategy that prioritizes heavy manufacturing and industrial sectors, leading to a transition from the agricultural to the secondary and tertiary sectors.

The study contributes to the emerging literature on structural transformation by investigating which sector is more efficient in reducing poverty in SSA countries, using the value-added share as a percentage of GDP for agricultural, manufacturing, industrial, and service sectors. The study also aims to determine if SSA countries have experienced immature structural transformation due to the growing share in the service sector.

Economic ties and formation of trade blocks escalates the movement of goods among the participants and bring different economic and structural changes. Therefore, the current research emphasises on the distribution of market structure and industrial value added among the participant countries of China–Pakistan economic corridor project while focussing on pre and post FTA status.

This study utilises the footloose capital model for analysing whether China or Pakistan is more suitable for attracting factors of production to increase their share of industrial value added. For econometric analyses the current research utilises data from 1995 to 2018 and maximum likelihood effect method to assess factors that affect regional value-added distribution.

Results show that both countries owe different level of economic developments. Effect of capital is, comparatively, similar for both countries while Pakistan supports trade openness which points towards the fact of positive utilisation of abundant labour resources in Pakistan by establishing industrial structure either through domestic capital formation or foreign investment. Whereas, share of labour and trade openness of China positively affect value added production of China.

This is one of the unique studies that studies the regional economic treaties usefulness for any developing country across Asia. Where this study uses the footloose capital model and maximum likelihood method for its analysis which is not previously done, while for detailed analyses the study further divides the timeframe into two parts as pre-FTA ranges from 1995 to 2006, post-FTA from 2007 to 2018 while overall results consist of whole-time frame.

The chapter analyses the international economic specialization of the Republic of Belarus based on the balance of payments and national statistics data by type of economic activity. It also demonstrates application of the customized Trade in Value Added methodology for analysis of the international economic specialization of Belarus. The methodology has been developed for the calculation of selected key figures for 2011–2016. Using of “Input–Output” tables to measure intersectoral relationships enabled assessment of the international trade not only in terms of prices of goods and services, but in terms of value added of each product. The analysis shows that the most important industries of the international economic specialization of Belarus are oil products, chemical products, food stuffs, equipment and vehicles, transport services, computer services. Domestic value added share of exports is about 60%, which corresponds to the level of such countries of Central and Eastern Europe as the Czech Republic, Slovakia, Estonia, Poland. Consequently, import intensity of exports accounts for about 40%. The results of the study have allowed to assess the interrelation between production, exports, and economic growth and to provide recommendations ensuring a deficit-free balance of payments.