Decomposition of Poland’s Bilateral Trade Imbalances by Value Added Content

International Trade Effects of Value-Added Taxation

Measuring the Value Added by Money in Trade

The paper tests the proposition that money generates value in trade. It examines the data for 5,746 Russian companies for 1997 and finds that money accounts for 24.6 percent of their value-added. The functional form of the return on money in trade is determined to be positive and marginally declining. The paper imputes that Russian GDP lost 8.1 percent in 1997 because of diminished use of money...

Trade Costs and Gravity for Gross and Value Added Trade

Cross-border production fragmentation enables countries to export domestic value added not only directly in the form of gross exports of final goods, but also indirectly by participating in global supply chains. This paper studies the determinants of trade in value added. I incorporate the global input-output structure into an international trade model to derive an approximate gravity equation ...

Dynamic Patterns of Trade Imbalances

Based on the recursive preference approach, the dynamic and global properties of the two-country open economy are examined with one good and inputs of labor and capital, with capital being freely traded internationally. First by showing that the world’s consumption increases (resp. decreases) with an increase (resp. decrease) in the world’s capital, the global stability of the economy is obtain...

Decomposition of Estimates in a Layered Value-Added Assessment Model

The layered model of Sanders, et al. (1997) is a value-added assessment model that uses multivariate longitudinal mixed model methodology. This model, whose advantages are reemphasized here, has been criticized for its complexity and lack of transparency. The main purpose of this paper is to provide more transparency for this model by comparing it to three sub-models which provide a decompositi...