Global Value Chain Decomposition of Inter-Country Input-Output Tables

Four global value chain (GVC) decompositions are implemented. The Leontief decomposition derives the value added origin of exports by country and industry as in Hummels, Ishii and Yi (2001). The Koopman, Wang and Wei (2014) decomposition splits country-level exports into 9 value added components, and the Wang, Wei and Zhu (2013) decomposition splits bilateral exports into 16 value added components. The Borin and Mancini (2019) decomposition splits country-, sector- or bilateral-level exports into up to 13 value added and GVC components, and also provides a corrected version of the (biased) KWW decomposition. It is the recommended method and reproduces the Stata icio command.

Contents

Functions to load an ICIO table and create an 'icio' object

load_icio()
load_icio_csv()

Functions to perform GVC decompositions on an 'icio' object

bm()
leontief()
kww()
wwz()

Interface function dispatching on the method, also for lists of 'icio' objects (e.g. several years)

decomp()

Function to obtain KWW decomposition from WWZ decomposition

wwz2kww()

Example ICIO data

data("leather")

Note

icio is derived from the CRAN package decompr (Quast and Kummritz 2015), of which the author was a co-author and which is no longer maintained. bm() is the R counterpart of decompose() in the Julia package GlobalValueChains.jl.

References

Hummels, D., Ishii, J., & Yi, K. M. (2001). The nature and growth of vertical specialization in world trade. Journal of international Economics, 54(1), 75-96.

Koopman, R., Wang, Z., & Wei, S. J. (2014). Tracing value-added and double counting in gross exports. American Economic Review, 104(2), 459-94.

Wang, Zhi, Shang-Jin Wei, and Kunfu Zhu (2013). Quantifying international production sharing at the bilateral and sector levels (No. w19677). National Bureau of Economic Research.

Borin, A., & Mancini, M. (2019). Measuring What Matters in Global Value Chains and Value-Added Trade. World Bank Policy Research Working Paper 8804.

Belotti, F., Borin, A., & Mancini, M. (2021). icio: Economic analysis with inter-country input-output tables. The Stata Journal, 21(3), 708-755.

See also

https://sebkrantz.github.io/icio/

Author

Sebastian Krantz sebastian.krantz@graduateinstitute.ch
Bastiaan Quast
Fei Wang
Victor Stolzenburg