The Great Collapse in Value Added Trade |
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Authors: | Arne J Nagengast Robert Stehrer |
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Institution: | 1. Deutsche Bundesbank, Frankfurt am Main, Germany;2. Vienna Institute for International Economic Studies (wiiw), Vienna, Austria |
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Abstract: | This paper studies the great collapse in value added trade using a structural decomposition analysis. We show that changes in vertical specialization accounted for more than 40% of the great trade collapse. Second, we find that the drop in the overall level of demand accounted for roughly a quarter of the decline in value added exports while just under one third was due to compositional changes in final demand. Finally, we demonstrate that the dichotomy between services and manufacturing sectors observed in gross exports during the great trade collapse is not apparent in value added trade data. |
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