Changes in Domestic Value Added from Exports : A Structural Decomposition Approach

This study focuses on the time series analysis of and factors influencing the export-related domestic value added (DVA) in Japan. We redefine the indicators of DVA associated with the intermediate and final goods exports to incorporate the analysis of the participation and position of the global value chain (GVC) in the decomposition analysis. We also develop a structural decomposition analysis (SDA) for the indicators, considering the relationship between the value added and input coefficients, and empirically analyze Japan’s economy using the indicators, SDA, and World Input–Output Tables for 2000–2014. The results show that the export-related DVA increase in the computer and automotive manufacturing industries. Japan’s export triggers expansion in downstream markets of China, Taiwan, and Mexico. China, Korea, and Taiwan are important trade partners, and high technology industries are key to GVC growth. This study recommends developing supply chain strategies and trade rules considering these countries and industries