@article{Veenendaal:332324,
      recid = {332324},
      author = {Veenendaal, Paul},
      title = {Trade Redirection in Global Supply Chains},
      address = {2013},
      pages = {21},
      year = {2013},
      note = {Presented at the 16th Annual Conference on Global Economic  Analysis, Shanghai, China},
      abstract = {We define trade redirection in global supply chains as the  reshipment of value added imports by the last but one  country in the chain to their final destination. The  redirector is either the final producer producing final  output exports or the last exporter of intermediate output  to the final producer producing for domestic use. We  completely characterize trade redirection in terms of value  added trade in global input-output models making use of the  concept of intermediate value added exports up to the  production gate of the final producer, factory gate exports  for short. From the GTAP-datasets we obtain global  input-output systems for the years 2001, 2004 and 2007.  Empirical results for an aggregate system comprising twelve  industries and twelve regions indicate that redirection for  foreign final output use at home is slightly larger than  redirection via final output exports. Redirection via final  output exports (type I redirection) is most important in  manufacturing while redirection for foreign final output  use at home (type II redirection) is especially important  for the services industries Taking both types together,  redirection amounted to almost one fifth of global value  added exports in the period 2001-2007. We reveal recent  developments in global supply chains via an analysis of the  developments in trade redirection at the level of end-use  industries, covering all redirection of intermediate  imports by the last but one country in the chain. We  conclude that factory gate exports are a useful concept to  characterize the structure of international production  networks (as revealed by their hub and spokes  relationships), to assess whether a country’s trade is  relatively upstream or downstream and to measure the value  added content of trade.},
      url = {http://ageconsearch.umn.edu/record/332324},
}