Calculates the decomposition of value added in exports of a country or a group of countries according to different methodologies.
make_exvadec(
wio_object,
exporter = "all",
method = "bm_src",
output = "standard",
quiet = FALSE,
...
)A list object of class exvadec with several matrices
plus metadata.
An object of class wio (standardized world
input-output table) obtained using make_wio().
String with a country or a country group code
(e.g., "USA", "NAFTA", etc.). The default "all"
produces the decomposition of value added in exports for all
available individual countries.
A string specifying the export VA decomposition method:
"bm_src": Borin and Mancini, source-based (2023) (default).
"bm_snk": Borin and Mancini, sink-based (2023).
"wwz": Wang et al. (2013).
"kww": Koopman et al. (2014).
"my": Miroudot and Ye (2021)
"oecd": OECD (not properly a decomposition).
Type of matrices in output:
"standard" (default): Shows the domestic content (DC),
domestic value added (DVA), the domestic double counting
(DDC), the foreign content (FC), the foreign value
added (FVA) and the foreign double counting (DDC). The
value added exported (VAX) is also produced in most cases, and
additional indicators in some cases.
"terms": Shows the basic decomposition terms, whose sum gives
the value of gross exports. The number and specification of terms
follows the standard in the economic literature: 12 in the Borin and
Mancini (2019) decompositions (source and sink), 16 in the Wang et al.
(2013) decomposition, 9 in the Koopman et al. (2014) decomposition
and just 4 in the Miroudot and Ye (2021) decomposition (as the latter
does not expand value added in terms of final absorption). \
Additional outputs:
For the "bm_src" (Borin and Mancini, 2023, source-based) method
there is an additional "basic" output, without GVC indicators. This
output will replace "standard" if targeted perspectives (sector,
bilateral or sector-bilateral) are selected.
For the Miroudot and Ye (2021) method there is an additional
"terms2" output, when world perspective is selected.
For the "wwz" (Wang et al. ,2013) decomposition there is an
additional "terms2" option with an alternative arrangement of
the 16 terms.
For the "oecd" decomposition there is an additional "tiva"
output with several indicators of the OECD TiVA database.
Boolean, if TRUE, suppresses all status messages. Default
is FALSE, i.e., messages are shown.
Additional parameters for targeted value-added perspectives
and for sector breakdown. Targeted value-added perspectives are only
available for the "bm_src" (Borin and Mancini, 2023, source-based) and
the "my" (Miroudot and Ye, 2021) decomposition methods. Specific
perimeters can be partner, sector and general perimeter. Sector breakdown
is only available for the "bm_src" (Borin and Mancini, 2023,
source-based) method, and can be exporting sector and sector of origin
of value added.
partner String, for bilateral perspective. Default is "WLD", but
any country or country group code (e.g. "USA" or "EU27") can be
specified. In that case, all flows that cross the bilateral geographic
perimeter more than once will be considered as double counting.
sector String, for sector perspective. Default is "TOTAL", but
any sector or sector group code (e.g. "MANUF") can be specified. In
that case, all flows that cross the sector perimeter more than
once will be considered as double counting. \
The bilateral and sector perspectives can be combined in a
bilateral-sector perspective.
perim (only for "my", and incompatible with sector or partner
specifications). String, for general perimeter of value added.
If perim = "WLD" (world) is specified (default is exporting country),
then all flows that cross the border of any country
more than once will be considered as double counting (unlike in the
country perspective, where flows are considered as double counting
only when they exit the border of the exporting country
more than once). Please note that, when using the world perspective
(perim = "WLD") and the terms output (output = "terms", the foreign
double counting will be automatically divided into two
elements ("terms2").
bkdown Sector breakdown (only for "bm_src"). The default value
"exporting" will present a breakdown of value added by exporting
sector. The matrix product VB is diagonalized, and the total content
of value added (domestic and foreign) will coincide with total gross
exports. The alternative value "origin" will show a breakdown by
sector of origin of value added. In this case, only matrix V will be
diagonalized and the total content of value added will not coincide
with total gross exports.
Borin, A., & Mancini, M. (2023). Measuring What Matters in Value-Added Trade. Economic Systems Research, 1-25.
Koopman, R., Wang, Z., & Wei, S.-J. (2014). Tracing Value-Added and Double Counting in Gross Exports. American Economic Review, 104(2), 459–494.
Miroudot, S., & Ye, M. (2021). Decomposing Value Added in Gross Exports. Economic Systems Research, 33(1), 67–87.
Wang, Z., Wei, S.-J., & Zhu, K. (2013). Quantifying International Production Sharing at the Bilateral and Sector Levels (NBER Working Paper No. 19677). National Bureau of Economic Research, Inc.
# Create a test wio
wio <- make_wio("iciotest")
# Make Borin and Mancini (2023) source decomposition for Spain
exvadec <- make_exvadec(wio, exporter = "ESP", method = "bm_src")
# Make Wang et al. (2013) decomposition for all countries
# expressed in the traditional 16 terms
exvadec <- make_exvadec(wio, method = "wwz", output = "terms")
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