Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/126565
Authors: 
Nagengast, Arne J.
Stehrer, Robert
Year of Publication: 
2015
Series/Report no.: 
Discussion Paper, Deutsche Bundesbank 47/2015
Abstract: 
This paper studies the great collapse in value added trade using a structural decomposition analysis. We show that changes in vertical specialisation accounted for almost half of the great trade collapse, while the previous literature on gross trade has mainly focused on final expenditure, inventory adjustment and adverse credit supply conditions. The decline in international production sharing during the crisis may partially account for the observed decrease in global trade elasticities in recent years. Second, we find that the drop in the overall level of demand accounted for roughly a quarter of the decline in value added exports while just under one third was due to compositional changes in final demand. Finally, we demonstrate that the dichotomy between services and manufacturing sectors observed in gross exports during the great trade collapse is not apparent in value added trade data.
Subjects: 
Great trade collapse
Vertical specialisation
Trade in value added
Input-output tables
Structural decomposition analysis
JEL: 
F1
F2
C67
R15
ISBN: 
978-3-95729-222-3
Document Type: 
Working Paper

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