From Trade in Goods to Trade in Tasks
Regional Networks in Global Supply Chains
Project progress report
WTO/IDE-JETRO
Tariffs
Trade
determinants
Trade-related
infrastructure
FDI
Trade patterns
Trade in intermediate goods
Processing trade
New metrics of
vertical trade
& TVA
Vertical specialization
and domestic content
of exports (TVA)
MFN Applied Tariffs
Source: World Tariff Profiles, 2010
Tariff Escalation in selected Asian economies
(percentage)
Source: World Tariff Profiles, 2010
Merchant fleet
(Dead weight tons, thousands)
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
Hong Kong SAR
Source: UNCTAD, 2010
Singapore
China
Japan
Cost to export (US$ per container – left axis)
& Time to export (days – right axis) 2005 &
2008
1200
30
1000
25
800
20
600
15
400
10
200
5
0
0
China
Chinese
Taipei
Hong
Kong,
China
Cost of Exports 2005
India
Indonesia
Japan
Cost of Exports 2008
Data Source: World Bank – Doing Business.
Korea,
Rep.
Malaysia Philippines Singapore Thailand
Time to Export 2005
Vietnam
Time to Export 2008
Regional share of FDI Inward and Outward Flows in total
World – 1985, 1995 & 2008, (percentage).
Commonwealth of
Independent States
Europe
North America
49
54
42 50
1985
32
24 29
24 22
1995
0
1985
1985
1
1995
1995
1 0
1 0
5 2
10 17
1985
1985
1985
1
2008
Middle East
6
1
1995
Data Source: UNCTAD, 2010.
7
1995
Africa
Central & South
America
4
2
1
1985
2
4
1
1995
0
2008
2008
Inward
3
Asia
2008
2008
8
7
0
35
31
46
0
Outward
2008
23 19
19 16
1995
2008
Changes in business practices/strategies led to the
development of international outsourcing of input
goods or services
Outsourcing
affiliate
at home
domestic production within the
non-affiliate
domestic outsourcing
firm
FDI
abroad
Offshoring
intra-firm trade
international outsourcing
arms' length trade
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)
Exports, BOP basis
Imports, BOP basis
6000
6000
5000
5000
4000
4000
3000
3000
2000
2000
1000
1000
0
0
2000
01
02
03
04
05
06
07
2008
2000
01
02
03
04
05
06
07
2008
Source: IMF Balance of Payment statistics partially completed with WTO estimates for missing data.
Goods resulting from inward processing
Other goods
Goods for inward processing
Other goods
Trends in world trade of total merchandise,
intermediate goods and other commercial services,
Index 1988 =100
1000
900
Other commercial services
Intermediates
800
Total Merchandise
700
600
500
400
300
200
100
0
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Source: WTO and UN Comtrade database
Intermediate goods in trade flows reflect the role of a
country in the GSC
Share of intermediate goods in total non-fuel merchandise trade,
2009, in %
80
70
60
50
40
30
Imports
Exports
20
10
0
Source: WTO and UN Comtrade database
Measuring value added and vertical specialization –
an illustrative example
Source: WTO
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 can’t manage what you can’t 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)
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, …
Source: WTO and IDE-JETRO
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