OECD WORK ON GLOBAL VALUE CHAINS AND TRADE IN VALUE ADDED

Transcription

1 OECD WORK ON GLOBAL VALUE CHAINS AND TRADE IN VALUE ADDED Koen De Backer Workshop on Global Value Chains in Shipbuilding Paris, November 01 The emergence of Global Value Chains Final consumption Final assembly 1 Trade in inputs (first tier suppliers) Trade in inputs (second tier suppliers) 1

2 GVCs in shipbuilding Measurement of GVCs is a challenge When a good (or service) crosses borders several times at different stages of processing, conventional trade statistics record each time the full value of the good, including embodied (imported) intermediate inputs. Issues: 1. Multiple counting of intermediate goods and services. Tends to conceal the actual patterns of trade & beneficiaries

3 OECD work on Trade in Value Added Final consumption Final assembly 1 Decomposition of gross exports 100% 90% 80% 0% 0% 0% 0% 0% 0% 10% 0% 1 Value added by second tier suppliers Value added by first tier suppliers Value added in the country of final production Trade in inputs (first tier suppliers) Trade in inputs (second tier suppliers) Foreign value added of world exports % 0% % 0% 1% 10% % 0%

4 Differences across industries Foreign value added of exports Differences across countries (1) Foreign value added of exports 8

5 Differences across countries () Foreign value added of exports, shipbuilding 9 Regional or global value chains? Dominant links between economies, exports of intermediates, 00 Dominant links between countries, exports of intermediates New Zealand Australia East Asia Korea NAFTA China Canada Mexico Japan United States Israel Brazil Argentina ASEAN Indonesia Philippines Malaysia Thailand Singapore Viet Nam EU1+CHE Austria Germany Ireland UK Norway Turkey Czech Rep. Hungary Poland Slovak Rep. Russian Fed. Netherlands Finland France Sweden Switzerland Denmark South Africa Romania Estonia Italy Spain Belgium Portugal Luxembourg Export share is more than 0% Export share is more than 1% Source: Own calculations based on OECD Input-Output Database (September, 010) and OECD STAN BTD (March, 010)

6 Interconnected Economies Benefiting from Global Value Chains CH. 1: CH. : CH. : CH. : CH. : CH. : CH. : CH. 8: The rise of GVCs Measuring Trade in Value Added GVCs and trade policy GVCs and investment policy GVCs and economic development National competitiveness and GVCs GVC upgrading and knowledge based assets GVCs and global systemic risk 11 GVCs and border policies (trade and investment) The efficient functioning of GVCs (hence the participation of countries in GVCs) depends on the easy/smooth circulation of productive resources within GVCs: goods (final and intermediate), services, capital, people, human capital, technology; No mercantilistic approach: GVCs is about imports ànd exports; offshoring reinforces export competitiveness Barries to import = taxes on exports Trade facilitation + efficient services Trade and investment liberalisation: Multilateral vs regional vs bilateral agreements Broad coverage 1

7 GVCs and the competitiveness of national economies Rising leakage of domestic stimuli and support packages Competitiveness increasingly depends on exports and imports; offshoring/outsourcing reinforces countries competitiveness. Old-style support policies ignore the interconnected nature of production in GVCs and the need for international competition and openness. Moreover, they raise risks of protectionism. What you do matters more than what you export ; focus on activities/functions instead of products/industries The manufacturing of goods remains a core activity in GVCs and it increasingly drives on efficient services. Competitiveness in GVCs involves strengthening production factors that are "sticky and not susceptible to movement across borders - importance of knowledge based capital 1 Competitiveness knowledge based capital Value added The smile curve, electronics R&D Global Value Chain in the 000s Services Design Marketing Logistics: purchase Logistics Production Value Chain in the 190s Pre-production Intangible Pre-production Tangible activities Post-production Intangible Value chain activities Source: based on Shih (199), Dedrick and Kraemer (1999) and Baldwin (01) 1

8 Interconnected Economies Benefiting from Global Value Chains oe.cd/gvc 1 FOR MORE INFO: koen.debacker@oecd.org oe.cd/gvc 8