Decomposing Value Added in Gross Exports from a Country and Bilateral Perspective

Relying on international input-output tables, the analysis of trade flows in value-added terms has become popular in the past decade. Decomposing gross exports in different value-added terms not only allows to remove the double counting of intermediate inputs but also provides useful insights on the structure of global value chains (GVCs). While different frameworks have been proposed, they generally define double-counting from a world perspective. In this paper, we provide consistent formula for the value-added decomposition of gross exports from a country and bilateral perspective to be closer to the needs of trade economists and GVC researchers