Exploring changes in world production and trade

Abstract

Drawing on the 2018 update of OECD’s Inter-Country Input-Output (ICIO) database, this paper explores the evolution of trade in value added (TiVA) between 2005 and 2015. Changes in international production systems are examined with particular attention given to four key sectors heavily integrated into global value chains (GVCs): Textiles and Apparel; Chemicals; ICT and Electronics; and, Motor Vehicles. Some insights into the roles played by services sectors and non-residents’ expenditure and, the employment and environmental impacts of GVCs, are also provided. Considerable heterogeneity across countries and regions is revealed, particularly for East and Southeast Asian where China plays a key role. Services are increasingly important for manufactured exporting activities as well as for countries wishing to “upgrade” their activities to higher value added stages of production. Taking a consumption perspective suggests that national efforts to mitigate greenhouse gas (GHG) emissions could be affected by international outsourcing of production.