UK regions in the global economy

This paper analyses the first comprehensive estimates of subnational Trade in Value Added (TiVA) indicators for the United Kingdom, developed by the OECD with support from the UK Department for Business, Innovation, Science and Trade (BIST) and the Office for National Statistics (ONS). Based on harmonised Supply-Use and Input-Output tables and aligned with the OECD TiVA database, these estimates enable new insights into global value chain (GVC) integration across the 12 UK TL2 regions (equivalent to ITL1 regions). Using 2019 as a reference year, the paper shows that UK regions are deeply integrated into both domestic and global value chains. Only 58% of the value added embodied in exports is generated locally, with 22% sourced from other UK regions and 20% from abroad. Regions participate both directly and indirectly, with one-third of UK regions participating in GVCs indirectly by providing more intermediate inputs to other UK regions for subsequent exports. EU27 and North America are key partners for UK regions. EU27 suppliers are the main source of foreign inputs for export production across most regions. Outside the EU27, the United States is the leading input supplier, while the People’s Republic of China is the main downstream user of UK regional value added.