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Global Value Chain Indicators: A Survey and Application to RCEP

Global Value Chain Indicators: A Survey and Application to RCEP
21 October 2022
Chandra T. Putra
RCEP, RCEP countries, Trade, FTAs

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This study follows and extends a survey by Amador and Cabral (2014) on global value chain (GVC) indicators and applies selected indicators to data from Regional Comprehensive Economic Partnership (RCEP) countries. The four methods of GVC measurement are product classification, trade processing, multicountry input output, and firm-level trade activity. Because of limitations in data availability and accessibility, product classification and trade processing methods seem to be unsuitable for RCEP application. There is a trade-off between the two more suitable methods. Multi-country input output has the ability to capture comprehensive forms of GVC trade and covers all sectors of the economy but has a quite aggregated sector code. On the other hand, the product classification method only indirectly captures GVC activity and has limited sectoral coverage but has disaggregated product-level data.

Global Value Chain Indicators: A Survey and Application to RCEP

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