The goods and services we buy are composed of inputs from various countries around the world. However, the flows of goods and services within these global production chains are not always reflected in conventional measures of international trade.
The joint OECD – WTO Trade in Value-Added (TiVA) initiative addresses this issue by considering the value added by each country in the production of goods and services that are consumed worldwide. TiVA indicators are designed to better inform policy makers by providing new insights into the commercial relations between nations.
Database access and content
The second release of the OECD-WTO TiVA database (May 2013) presents indicators for 58 economies (including all OECD countries, Brazil, China, India, Indonesia, Russian Federation and South Africa) covering the years 1995, 2000, 2005, 2008 and 2009 and broken down by 18 industries. Indicators include:
Decomposition of gross exports by industry into their domestic and foreign content
The services content of gross exports by exporting industry (broken down by foreign/domestic origin)
Bilateral trade balances based on flows of value added embodied in domestic final demand
Development of these TiVA indicators has greatly benefitted from other related work such as that carried out by the European Commission’s FP7 WIOD project and by researchers at US ITC and IDE JETRO, Japan.
Global value chains and going beyond trade in value added
Taking into account the origin of value added is only the beginning of the OECD's work in this area. A comprehensive report on the policy implications of GVCs will be released for the OECD Ministerial meeting end May 2013, covering trade policy, investment policies and other domestic policies aimed at drawing the benefits from engagement in global value chains. Much of the evidence that feeds into this work draws on the underlying Statistical Information System (global input-output database) developed to produce the TIVA database, and so, further indicators can be expected in a number of areas in the coming years. Two important areas in this respect concern 'trade in jobs and skills', where indicators will begin to be rolled out for some countries later this year and over the longer term; and how income (profits) generated from trade flows, in particular how income generated via knowledge based assets, is further distributed between affiliate companies will also be explored. The Statistical Information System also lends itself to the calculation of indicators in a number of other areas such as carbon footprints, where the OECD will look to update its earlier results, notably as part of the OECD Green Growth Indicators.