Measuring Participation in Global Value Chains, and Developing Supportive Policies: A User Guide

Measuring Participation in Global Value Chains, and Developing Supportive Policies: A User Guide

Date: 
Thursday, June 4, 2020
Type: 
Manuals, guidelines, training materials
Abstract

This user Guide is designed to equip applied researchers with the tools necessary to understand and use value added decompositions of trade data. Such decompositions are key to the quantitative analysis of trade within Global Value Chains (GVCs) and the various linkages across sectors and countries that they imply. It explains a basic Leontief decomposition into value added components, and discusses the limitations of that approach. It then presents current best practice intuitively. Using MRIO-data produced by ADB as underlying dataset, all analysis is accompanied by transparent Stata code in which each analytical step is made explicit; all data and .do files are freely available with the user guide. Rather than focus on proofs and derivations, the interest of the user guide is in understanding the intuition and policy-relevance of this approach, as well as relevant limitations. Readers will be equipped to undertake their own analysis.

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