Identifying hubs and spokes in global supply chains using redirected trade in value added

The increasing importance of global supply chains has prompted the use of analytical tools based on trade in value added – instead of traditional measures in gross value. We extend this analytical framework to create indicators that identify hubs and spokes in international supply chains. Using these indicators and the GTAP databases for 2001, 2004 and 2007 we identify the importance of redirected value added trade and the hub and spoke relationships at the aggregate level and for specific highly integrated industries.