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 development of measures of Trade in Value-Added (TiVA) 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.
TiVA indicators are expressed in USD millions at current prices, in the case of monetary values, or as percentages for ratios and shares. They provide insights into:
The 2022 edition of TiVA provides indicators for 76 economies (including all OECD, EU, G20 and ASEAN economies) over the period 1995-2020. Compared to the previous 2021 edition of TiVA, 10 new countries are now included: Bangladesh, Belarus, Cameroon, Côte d'Ivoire, Egypt, Jordan, Nigeria, Pakistan, Senegal and Ukraine. The industry list now has new codes, to conform to a new standard for all OECD databases with an economic activity dimension, although its coverage remains unchanged with 45 unique economic activities organised in a hierarchy, with aggregates for total manufactures and total services.
TiVA indicators are derived from OECD Inter-Country Input-Output (ICIO) tables. These are constructed using statistics compiled from national, regional and international sources according to the 2008 System of National Accounts (2008 SNA), and use an industry list based on the International Standard Industrial Classification Revision 4 (ISIC Rev.4).
The TiVA database consists of 5 sets of indicators:
Important note concerning TiVA estimates for the most recent years
The TiVA estimates for the most recent years should be interpreted with caution.
Harmonised national Supply and Use Tables (SUTs) and Input-Output Tables (IOTs) are key inputs in the construction of ICIO tables from which TiVA indicators are calculated. Availability of official SUTs and IOTs is therefore a major determinant of inclusion in the published TiVA database. While some large economies (such as China, Japan and the United States) have already published SUTs for 2020, many countries publish SUTs with a time-lag of 3 to 5 years. Therefore, to produce ICIO tables for more recent years, the latest available harmonised SUTs are extrapolated under constraints coming from National Accounts (SNA) time series up to 2020, and further adjusted using Balance of Payments statistics and bilateral trade in goods and services, also up to 2020. An important implicit assumption is that countries’ industry input and output structures in extrapolated SUTs are similar to the structures of the latest available SUTs. This is a reasonable assumption in the absence of global or regional economic shocks. However, in 2020, the COVID pandemic and related lockdowns hit certain activities disproportionally (such as transport; accommodation and food services; arts, entertainment and sporting events) and the timing and the pace of recovery varied across countries and sectors.The magnitude of these changes and the extent to which they affect core TIVA indicators needs to be investigated further. As countries update and revise their annual SNA statistics from 2020 onwards and publish more recent SUTs and benchmark IOTs, a clearer understanding of the economic impact of COVID will emerge and the ICIO tables and TiVA indicators should reflect this.