On the Measurement of Upstreamness and Downstreamness in Global Value Chains

63 Pages Posted: 2 Jan 2018

See all articles by Pol Antras

Pol Antras

Harvard University - Department of Economics; National Bureau of Economic Research (NBER)

Davin Chor

Dartmouth College - Tuck School of Business

Multiple version iconThere are 2 versions of this paper

Date Written: December 2017

Abstract

This paper offers four contributions to the empirical literature on global value chains (GVCs). First, we provide a succinct overview of several measures developed to capture the upstreamness or downstreamness of industries and countries in GVCs. Second, we employ data from the World Input-Output Database (WIOD) to document the empirical evolution of these measures over the period 1995-2011; in doing so, we highlight salient patterns related to countries' GVC positioning - as well as some puzzling correlations - that emerge from the data. Third, we develop a theoretical framework - which builds on Caliendo and Parro's (2015) variant of the Eaton and Kortum (2002) model - that provides a structural interpretation of all the entries of the WIOD in a given year. Fourth, we resort to a calibrated version of the model to perform counterfactual exercises that: (i) sharpen our understanding of the independent effect of several factors in explaining the observed empirical patterns in the period 1995-2011; and (ii) provide guidance for how future changes in the world economy are likely to shape the positioning of countries in GVCs.

Keywords: Downstreamness, global value chains, Input-Output Tables, Upstreamness

JEL Classification: D5, F1, F2

Suggested Citation

Antras, Pol and Chor, Davin, On the Measurement of Upstreamness and Downstreamness in Global Value Chains (December 2017). CEPR Discussion Paper No. DP12549, Available at SSRN: https://ssrn.com/abstract=3095599

Pol Antras (Contact Author)

Harvard University - Department of Economics ( email )

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Davin Chor

Dartmouth College - Tuck School of Business ( email )

Hanover, NH 03755
United States

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