Supply Chain Fragmentation and the Global Trade Elasticity: A New Accounting Framework

In this paper, we offer a new framework to measure cross-border supply chain fragmentation and its impact on the global trade elasticity. Firstly, introduce ratio that sums volume of imports by all countries participate in particular chain. We find slowed down after 2010 for most goods, but not services. demonstrate importance using production data at constant prices measuring trends. Secondly, quantify elasticity world GDP, extending Bems et al. (Am Econ Rev Pap Proc 101(3):308–312, 2011). account effects from within chains as well asymmetric shocks final demand. declining pace accounted more than third decline 2010.