Estimating Trade in Value Added in the World Economy
Kyzym M. O., Khaustova V. Y., Shlykova V. O., Kramarev H. V., Pinchuk A. O.

Kyzym, Mykola O. et al. (2018) “Estimating Trade in Value Added in the World Economy.” The Problems of Economy 4:19–29.
https://doi.org/10.32983/2222-0712-2018-4-19-29

Section: World economy and international relations

UDC 339

Abstract:
The aim of the article is to analyze the estimates of value added trade in the global economy. The genesis of approaches to estimating international trade in value added and the development of the methodology for its statistical accounting are considered. The article highlights the joint initiative of OECD and the World Trade Organization to create a database of indicators of trade in value added (TiVA) as well as key gross trade indicators, enlarged groups of indicators of countries’ participation in global value chains, contained in TiVA, and the methods of their calculation. There analyzed some major indicators contained in TiVA, which characterize the features of value added in the context of countries of the world, including: gross added value by country and its growth rate; breakdown of sectors of the economy of countries by the share in the created value added; share of services in the total added value created in the leading countries in terms of its growth rate; changes in the domestic value added share of gross exports by country. Particular attention is paid to the issue of determining sectoral characteristics of trade in value added in the countries with which Ukraine has significant volumes of trade in goods. The changes in the domestic value added share of gross exports by countries are studied. The countries from which Ukraine imported the largest volumes of goods in monetary terms are singled out, and the main groups of imported goods are identified. There analyzed the changes in the domestic value added share of gross exports of mineral fuels, oil and its distillation products as well as domestic value added in the export of countries — key partners of Ukraine in the context of foreign economic activity. It is determined that the long-term trend in the reduction of industrial production in the economy of Ukraine and the technological lag have led to the degradation of national high-tech industries and the deepening of specialization in the export of low-grade products. It is substantiated that inclusion in global value chains can potentially attract foreign investment into the country to industrialize the economy and provide employment.

Keywords: value added, valuation, trade, global value chains, exports, imports.

Fig.: 8. Tabl.: 2. Bibl.: 10.

Kyzym Mykola O. – Doctor of Sciences (Economics), Professor, Corresponding Member of NAS of Ukraine, Chief research scientist, Research Centre for Industrial Problems of Development of NAS of Ukraine (2 floor 1-a Inzhenernyi Ln., Kharkіv, 61166, Ukraine)
Email: m.kyzym@gmail.com
Khaustova Viktoriia Ye. – Doctor of Sciences (Economics), Professor, Director, Research Centre for Industrial Problems of Development of NAS of Ukraine (2 floor 1-a Inzhenernyi Ln., Kharkіv, 61166, Ukraine)
Email: v.khaust@gmail.com
Shlykova Viktoriia O. – Candidate of Sciences (Economics), Senior Research Fellow, Department of Macroeconomic Policy and Regional Development, Research Centre for Industrial Problems of Development of NAS of Ukraine (2 floor 1-a Inzhenernyi Ln., Kharkіv, 61166, Ukraine)
Email: v.shlykova@ukr.net
Kramarev Hennadii V. – Candidate of Sciences (Economics), Applicant, Research Centre for Industrial Problems of Development of NAS of Ukraine (2 floor 1-a Inzhenernyi Ln., Kharkіv, 61166, Ukraine)
Email: kramarev@ukrngi.com
Pinchuk Alina O. – Candidate of Sciences (Economics), Associate Professor, Department of Marketing, PR-technologies and Logistics, Cherkasy State Technological University (460 Shevchenka Blvd., Cherkasy, 18006, Ukraine)

List of references in article

Ponomarenko, A. N., and Muradov, K. Yu. “Novaya statistika dvizheniya dobavlennoy stoimosti v mezhdunarodnoy torgovle“ [New statistics on the movement of value added in international trade]. Ekonomicheskiy zhurnal VShE, no. 1 (2014): 43-79.
“Trade in Value Added Database“. OECD. https://stats.oecd.org/Index.aspx?DataSetCode=TIVA_2016_C1
“GTAP 9 Data Base“. Global Trade Analysis Project. https://www.gtap.agecon.purdue.edu/databases/v9/default.asp
“TiVA 2016 indicators - definitions“. Organisation for Economic Co-operation and Development. http://www.oecd.org/sti/ind/tiva/TIVASaM_2016_Indicator_Definitions.pdf
Leontief, W., and Strout, A. “Multiregional Input-Output Analysis“. In Structural Interdependence and Economic Development. London: St. Martin's Press, 1963.
Moses, L. M. “The stability of interregional trading patterns and input-output analysis“. American Economic Review, no. 45 (1955): 803-832.
Chenery, H., and Clark, P. The Structure and Growth of the Italian Economy, Regional Analysis. Rome, 1953.
Granberg, A. G. Optimizatsionnyye mezhregionalnyye mezhotraslevyye modeli [Optimization inter-regional inter-branch models]. Novosibirsk: Nauka, Sib. otd-niye, 1985.
“Heohrafichna struktura zovnishnyoi torhivli tovaramy“ [Geographic structure of foreign trade in goods]. Derzhavna sluzhba statystyky Ukrainy. http://www.ukrstat.gov.ua/
“Global Value Chains and Developing Countries“. National Board of Trade Sweden. https://www.kommers.se/In-English/Publications/2013/Global-Value-Chains-and-Developing-Countries/