Made in the World
From Trade in Goods to Trade in Tasks
andreas.maurer@wto.org
Boeing Dreamliner 787
Source: Graphic News
http://online.wsj.com/article/SB1000142405274870482810457602114290241
3796.html
Processors, €34, 6%
Memories, €15, 3%
Integr.circuits, €32, 6%
Who Captures Value in Global
Supply Chains?
Case Nokia N95
Display, €22, 4%
Camera (5 mp), €17, 3%
Other parts, €59, 11%
Licenses, €21, 4%
Value added
in Nokia’s
internal
support
fns, €169, 31%
(Excl. Operating profit &
assembly listed below)
Source:
Jyrki Ali-Yrkkö, Petri Rouvinen,
Timo Seppälä & Pekka Ylä-Anttila
ETLA, The Research Institute of
the Finnish Economy
Nokia’s
operating
profit, €89, 16%
Final assembly, €11, 2%
Distribution, €19, 4%
Retailing, €60, 11%
Smiley Face
(Source: Business Week International online extra, May 16, 2005, Stan Shih on
Taiwan and China)
Added
Value
R&D/Innovation
Centre
Global Logistics
Center
Higher Added-value
and Lower
Replacement
Standardisation
Brand
Innovation
Marketing
Value Creation
R&D
Logistics
Design
Manufacture
Value-added process
Assembly
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7
Trade patterns and global
value chains in East Asia :
From Trade in Goods to Trade in Tasks
andreas.maurer@wto.org
Global production chains – Ins and outs
International consumer demand
Emergence of “Trade in tasks”:
Lower applied tariffs
and trade policy incentives
•
•
Development of infrastructure
and technological progress
Global production chains
and world trade
•
Dominance of trade in
intermediate goods
Development of intrafirm trade
Increase of processing
trade
Export processing zones
Outsourcing and offshoring strategies
and FDI
Need for new statistical
measures of international trade
Asian economies have relatively low applied tariffs on imports
(especially on semi-processed goods)
Source: WTO
Export processing zones account for about 20% of total
merchandise exports of developing economies
: economies with EPZs
(2006 or most recent year)
Sources: ILO & WTO
Asia is the most attractive FDI destination
in the developing regions
(Billions of US$)
Source: UNCTAD
Intermediate goods dominate world non-fuel
merchandise exports
Key facts on Asia trade in intermediate goods …
Billions of US$
•
•
•
•
•
Asia’s share in world exports of intermediate goods increases : 35% in 2009
Intra-Asian trade is predominant
Asia imports more intermediate goods than it exports
Intermediate goods traded by Asian economies are more and more sophisticated
More and more concentrated trade on few components
… Confirming that:
• Asia is the “World manufacturer”
• Asian supply chains boost the regional markets
• Asian economies present a high degree of industrial specialization
2009 value
Source: UNSD & WTO
Towards a new measure of international trade
• Traditional statistics present some biases:
– Multi-counting of trade flows in intermediate goods
– Difficult attribution of the country of origin of an imported
product
• Measuring trade in value added terms allows:
– To circumvent the biases observed with traditional statistics
– To take into account the specificity of trade occurring between
the different actors of a production chain
Computers and electronic equipment
exports and their domestic and imported contents
(in billions of $ and percentage)
Source: WTO, based on IDE-JETRO Asian Input-Output tables
United States-China trade balance
Traditional versus VA measure (in billions of US$)
Sources: UN Comtrade Database, IDE-JETRO AIO table and WTO estimates
Summary of the benefits of trade in value added
analysis
• A better evaluation of the actual contribution of
international trade to an economy
(incl. development, employment, environment)
• To highlight the interdependency of economies, and the
counter-productive effects of protectionist measures on
economies and enterprises they are supposed to protect
• Better evaluation of the contribution of the services sector
on trade
• Conventional trade statistics need complement for analysing
value added – data gaps and how can they be closed (TEC,
WIOD, OECD/WTO)
http://www.wto.org/english/res_e/statis_e/miwi_e/miwi_e.htm