TY  - CPAPER 
AB  - 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.
AU  - Veenendaal, Paul
DA  - 2013
DA  - 2013
ID  - 332324
KW  - International Relations/Trade
KW  - Research Methods/Statistical Methods
KW  - trade in value added
KW  - vertical specialization
KW  - global supply chains
KW  - global input-output tables
KW  - hubs and spokes
KW  - the GTAP Data Base and extensions
L1  - https://ageconsearch.umn.edu/record/332324/files/6464.pdf
L2  - https://ageconsearch.umn.edu/record/332324/files/6464.pdf
L4  - https://ageconsearch.umn.edu/record/332324/files/6464.pdf
LA  - eng
LA  - English
LK  - https://ageconsearch.umn.edu/record/332324/files/6464.pdf
N1  - Presented at the 16th Annual Conference on Global Economic Analysis, Shanghai, China
N2  - 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.
PY  - 2013
PY  - 2013
T1  - Trade Redirection in Global Supply Chains
TI  - Trade Redirection in Global Supply Chains
UR  - https://ageconsearch.umn.edu/record/332324/files/6464.pdf
VL  - 2013
Y1  - 2013
ER  -