Identifying hubs and spokes in global supply chains using redirected trade in value added |
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| Authors: | Arjan Lejour Paul Veenendaal |
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| Institution: | 1. CPB Netherlands Bureau for Economic Policy Analysis, The Hague, The Netherlands;2. Tilburg School of Economics and Management, Tilburg University, Tilburg, The Netherlands |
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| Abstract: | The increasing importance of global supply chains has prompted the use of analytical tools based on trade in value added – instead of traditional measures in gross value. We use this analytical framework to develop indicators that identify production hubs and supply spokes in global supply chains. Using these indicators and the Global Trade Analysis Project (GTAP) database, we quantify the relative importance of redirected value-added trade and the hub and spoke relationships at the aggregate level and for specific highly integrated industries. |
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| Keywords: | Trade in value added vertical specialization global supply chains global input–output tables hubs and spokes |
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