Tracing Value-Added and Double Counting in Gross Exports: Comment
- (pp. 1958-66)
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.20140883Additional 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