Session
Management, Business and Economics
Description
Although the impact of the production fragmentation on trade flows has been examined many times since the 1990s, the research was not comprehensive because of the limitations in traditional trade statistics. Early 2010s the complex databases containing world input-output tables (or indicators calculated on their basis) has made available. It increased the possibilities of examining the production sharing in the world. The trade statistic in value-added terms enables us better to estimate trade changes resulted from the internationalisation and globalisation as well as benefits of the countries from international trade.
In the literature there are many research studies to this topic. Unfortunately, trade in value added of the Central and Eastern European Countries (CEEC) has been so far insufficiently studied. Thus, the aim of the paper is to present changes in value added trade of the CEEC (Bulgaria, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia) in the period of 2000-2014. The concept “trade in value added” or “value added trade” is defined as the value added of a country which is directly and indirectly embodied in final consumption of another country. The typical question would be: “How much value added is created in a country d185ue to final consumption in the other countries?” The data will be download from the World Input-Output Database (WIOD).
The structure of this paper is as follows. First, theoretical and methodological aspects related to the application of the input-output tables in the trade analysis will be studied. Second, a brief survey of the empirical literature to this topic will be presented. Third, changes in exports and imports in value added of the CEEC will be analysed. A special attention will be paid to the differences in bilateral trade balances using traditional trade statistics (in gross terms) on one side and value added statistics on the other. Next, in order to identify factors influencing value added exports and value added imports of the CEEC the generalised gravity model, based on panel data, will be used.
The initial research results show that the CEEC have joined the fragmentation processes to a different extent. The most involved in this process were the Central European Countries (the Czech Republic, Poland, Slovakia, Hungary and also Slovenia), and the least – the Baltic States (Estonia, Lithuania and Latvia) as well as Bulgaria and Romania.
Session Chair
Edmond Hajrizi
Session Co-Chair
Armend Muja
Proceedings Editor
Edmond Hajrizi
ISBN
978-9951-437-59-2
First Page
59
Last Page
65
Location
Durres, Albania
Start Date
28-10-2017 9:00 AM
End Date
28-10-2017 10:30 AM
DOI
10.33107/ubt-ic.2017.242
Recommended Citation
Ambroziak, Lukasz, "Determinants of trade in value added: the case of the Central and Eastern European Countries" (2017). UBT International Conference. 242.
https://knowledgecenter.ubt-uni.net/conference/2017/all-events/242
Included in
Determinants of trade in value added: the case of the Central and Eastern European Countries
Durres, Albania
Although the impact of the production fragmentation on trade flows has been examined many times since the 1990s, the research was not comprehensive because of the limitations in traditional trade statistics. Early 2010s the complex databases containing world input-output tables (or indicators calculated on their basis) has made available. It increased the possibilities of examining the production sharing in the world. The trade statistic in value-added terms enables us better to estimate trade changes resulted from the internationalisation and globalisation as well as benefits of the countries from international trade.
In the literature there are many research studies to this topic. Unfortunately, trade in value added of the Central and Eastern European Countries (CEEC) has been so far insufficiently studied. Thus, the aim of the paper is to present changes in value added trade of the CEEC (Bulgaria, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia) in the period of 2000-2014. The concept “trade in value added” or “value added trade” is defined as the value added of a country which is directly and indirectly embodied in final consumption of another country. The typical question would be: “How much value added is created in a country d185ue to final consumption in the other countries?” The data will be download from the World Input-Output Database (WIOD).
The structure of this paper is as follows. First, theoretical and methodological aspects related to the application of the input-output tables in the trade analysis will be studied. Second, a brief survey of the empirical literature to this topic will be presented. Third, changes in exports and imports in value added of the CEEC will be analysed. A special attention will be paid to the differences in bilateral trade balances using traditional trade statistics (in gross terms) on one side and value added statistics on the other. Next, in order to identify factors influencing value added exports and value added imports of the CEEC the generalised gravity model, based on panel data, will be used.
The initial research results show that the CEEC have joined the fragmentation processes to a different extent. The most involved in this process were the Central European Countries (the Czech Republic, Poland, Slovakia, Hungary and also Slovenia), and the least – the Baltic States (Estonia, Lithuania and Latvia) as well as Bulgaria and Romania.