Who produces for whom in the world economy?

Guillaume Daudin (1) , Christine Rifflart (1) , Danielle Schweisguth (1)

1 OFCE - Observatoire français des conjonctures économiques (Sciences Po)

For nearly two decades, the share of trade in inputs, also called vertical trade, has dramatically increased. This paper suggests a new measure of international trade: "value-added trade". Like many existing estimates, "value-added trade" is net of double-counted vertical trade. It also reallocate trade flows to their original input-producing industries and countries and allows to answer the question "who produces for whom". In 2004, 27% of international trade were "only" vertical specialization trade. The sector repartition of value-added trade is very different from the sector repartition of standard trade. Value-added trade is less regionalized than standard trade.

Keywords: Globalization; Vertical trade; Regionalisation

Domains: Economics and Finance

Guillaume Daudin, Christine Rifflart, Danielle Schweisguth. Who produces for whom in the world economy?. 2009. ⟨hal-01066205⟩