Publication

Slicing Up Global Value Chains

Timmer, M., Erumban, A. A., Los, B., Stehrer, R. & Vries, G. J. D., 2013, Groningen: GGDC, 40 p. (GGDC Working Papers; vol. GD-135).

Research output: Working paperAcademic

APA

Timmer, M., Erumban, A. A., Los, B., Stehrer, R., & Vries, G. J. D. (2013). Slicing Up Global Value Chains. (GGDC Working Papers; Vol. GD-135). Groningen: GGDC.

Author

Timmer, Marcel ; Erumban, Abdul Azeez ; Los, Bart ; Stehrer, Robert ; Vries, Gaaitzen J. de. / Slicing Up Global Value Chains. Groningen : GGDC, 2013. (GGDC Working Papers).

Harvard

Timmer, M, Erumban, AA, Los, B, Stehrer, R & Vries, GJD 2013 'Slicing Up Global Value Chains' GGDC Working Papers, vol. GD-135, GGDC, Groningen.

Standard

Slicing Up Global Value Chains. / Timmer, Marcel; Erumban, Abdul Azeez; Los, Bart; Stehrer, Robert; Vries, Gaaitzen J. de.

Groningen : GGDC, 2013. (GGDC Working Papers; Vol. GD-135).

Research output: Working paperAcademic

Vancouver

Timmer M, Erumban AA, Los B, Stehrer R, Vries GJD. Slicing Up Global Value Chains. Groningen: GGDC. 2013. (GGDC Working Papers).


BibTeX

@techreport{99c08046bda64331adf54a9d5f374653,
title = "Slicing Up Global Value Chains",
abstract = "Studies of the effects of production fragmentation on factor income distributions typically analyze changes at the country, region, industry or firm level. In this paper we take the perspective of a product, and focus on the discrete activities in distinct locations, which altogether form a production network starting at the conception of the product and ending at its delivery. We take a macro-perspective and analyze factor content patterns for a wide set of manufacturing product groups, and study their development over time. Using a decomposition technique originally introduced by Leontief (1936), we ‘slice up the global value chains’ and trace the value added by all labor and capital that is directly and indirectly used for the production of final manufacturing goods. We find that the process of international fragmentation as measured by the foreign value-added content of production has rapidly increased since 1995 in most global value chains, but is still far from ‘completed’. We then turn to an analysis of the value distribution across production factors, and find a strong shift towards value being added by capital and high-skilled labor, and away from less-skilled labor. We also find a major shift in the production location, as the overall value added in advanced countries did not increase over the period 1995-2008 and all growth was realized in other emerging countries. Finally, we present evidence on the importance of manufactures GVCs for employment. We show how advanced nations increasingly specialize in activities carried out by high-skilled workers. Taken together the results suggest that the increasing possibilities for international production fragmentation had pervasive consequences for the factor income distribution both across and within countries.",
author = "Marcel Timmer and Erumban, {Abdul Azeez} and Bart Los and Robert Stehrer and Vries, {Gaaitzen J. de}",
note = "Relation: https://www.rug.nl/ Rights: University of Groningen",
year = "2013",
language = "English",
volume = "GD-135",
series = "GGDC Working Papers",
publisher = "GGDC",
type = "WorkingPaper",
institution = "GGDC",

}

RIS

TY - UNPB

T1 - Slicing Up Global Value Chains

AU - Timmer, Marcel

AU - Erumban, Abdul Azeez

AU - Los, Bart

AU - Stehrer, Robert

AU - Vries, Gaaitzen J. de

N1 - Relation: https://www.rug.nl/ Rights: University of Groningen

PY - 2013

Y1 - 2013

N2 - Studies of the effects of production fragmentation on factor income distributions typically analyze changes at the country, region, industry or firm level. In this paper we take the perspective of a product, and focus on the discrete activities in distinct locations, which altogether form a production network starting at the conception of the product and ending at its delivery. We take a macro-perspective and analyze factor content patterns for a wide set of manufacturing product groups, and study their development over time. Using a decomposition technique originally introduced by Leontief (1936), we ‘slice up the global value chains’ and trace the value added by all labor and capital that is directly and indirectly used for the production of final manufacturing goods. We find that the process of international fragmentation as measured by the foreign value-added content of production has rapidly increased since 1995 in most global value chains, but is still far from ‘completed’. We then turn to an analysis of the value distribution across production factors, and find a strong shift towards value being added by capital and high-skilled labor, and away from less-skilled labor. We also find a major shift in the production location, as the overall value added in advanced countries did not increase over the period 1995-2008 and all growth was realized in other emerging countries. Finally, we present evidence on the importance of manufactures GVCs for employment. We show how advanced nations increasingly specialize in activities carried out by high-skilled workers. Taken together the results suggest that the increasing possibilities for international production fragmentation had pervasive consequences for the factor income distribution both across and within countries.

AB - Studies of the effects of production fragmentation on factor income distributions typically analyze changes at the country, region, industry or firm level. In this paper we take the perspective of a product, and focus on the discrete activities in distinct locations, which altogether form a production network starting at the conception of the product and ending at its delivery. We take a macro-perspective and analyze factor content patterns for a wide set of manufacturing product groups, and study their development over time. Using a decomposition technique originally introduced by Leontief (1936), we ‘slice up the global value chains’ and trace the value added by all labor and capital that is directly and indirectly used for the production of final manufacturing goods. We find that the process of international fragmentation as measured by the foreign value-added content of production has rapidly increased since 1995 in most global value chains, but is still far from ‘completed’. We then turn to an analysis of the value distribution across production factors, and find a strong shift towards value being added by capital and high-skilled labor, and away from less-skilled labor. We also find a major shift in the production location, as the overall value added in advanced countries did not increase over the period 1995-2008 and all growth was realized in other emerging countries. Finally, we present evidence on the importance of manufactures GVCs for employment. We show how advanced nations increasingly specialize in activities carried out by high-skilled workers. Taken together the results suggest that the increasing possibilities for international production fragmentation had pervasive consequences for the factor income distribution both across and within countries.

M3 - Working paper

VL - GD-135

T3 - GGDC Working Papers

BT - Slicing Up Global Value Chains

PB - GGDC

CY - Groningen

ER -

ID: 15516662