This website uses cookies.

By clicking the "Accept" button or continuing to browse our site, you agree to first-party and session-only cookies being stored on your device to enhance site navigation and analyze site performance and traffic. For more information on our use of cookies, please see our Privacy Policy.

  1. Home
  2. Journals
  3. American Economic Review
  4. July 2016
  5. Tracing Value-Added and Double Counting in Gross Exports: Comment

Tracing Value-Added and Double Counting in Gross Exports: Comment

  • Bart Los
  • Marcel P. Timmer
  • Gaaitzen J. de Vries
American Economic Review
vol. 106, no. 7, July 2016
(pp. 1958-66)
Download Full Text PDF

Abstract

In a recent contribution to the AER, Koopman, Wang, and Wei (2014) proposed a decomposition of a country's gross exports into value-added components and double-counted terms. It is motivated by complex manipulation of basic accounting identities. In this comment we provide an alternative framework based on "hypothetical extraction." This parsimonious approach provides a clear definition of domestic value added in exports and has a natural extension into decompositions of bilateral export flows.

Citation

Los, Bart, Marcel P. Timmer, and Gaaitzen J. de Vries. 2016. "Tracing Value-Added and Double Counting in Gross Exports: Comment." American Economic Review, 106 (7): 1958-66. DOI: 10.1257/aer.20140883

Additional Materials

JEL Classification

  • E01 Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
  • E16 General Aggregative Models: Social Accounting Matrix
  • F14 Empirical Studies of Trade
  • F23 Multinational Firms; International Business
  • L14 Transactional Relationships; Contracts and Reputation; Networks