Domestic and foreign value added in exports in the era of global value chains: data from Russia
Abstract The study presents an analysis of data on value-added trade provided by ICIO OECD and ADB MRIO, investigates a set of value-added indicators to determine the dynamics of internal and external components of exports and to illustrate direct and inverse links of Russia in global value chains. It is noted that in conditions of economic shocks, knowledge of the geographical origin of value added in exports contributes to faster political decision-making and the earliest restoration or replacement of affected links in the global value chains. The article also considers issues of the share of foreign and domestic value added in Russian exports and how certain sectors of the Russian economy are integrated into the global value chains.
Keywords: global value chains, GVCs, global production systems, domestic value added, foreign value added, fragmented production, world trade, value added trade
Highlights:
♦ theoretical concepts of the decomposition of gross exports into domestic and foreign components of added values have been studied;
♦ using key methodologies for calculating the index of participation in the global value chains based on direct and feedback links, the degree of Russia`s participation in the value-added trade at the national and sectoral levels is determined;
♦ the calculation of the main indices of participation in the global value chains was carried out on the basis of the input-output tables of ADB MRIO and OECD ICIO, comparable results were obtained with the same trends in the dynamics of coefficients from year to year and small discrepancies in the values of the indices of 1-2%.
Mikhail V. Shatunov - Saint Petersburg State University, Saint Petersburg, Russia