OECD Science, Technology and Industry Working Papers

The OECD Directorate for Science, Technology and Innovation (STI) leads OECD research on the contribution of science, technology and industry to well-being and economic growth. STI Working Papers cover a broad range of topics including definition and measurement of science and technology indicators, global value chains, and research on policies to promote innovation. These technical or analytical working papers are prepared by staff or outside consultants to share early insights and elicit feedback.


Exploring changes in world production and trade

Insights from the 2018 update of OECD’s ICIO/TIVA database

Drawing on the 2018 update of OECD’s Inter-Country Input-Output (ICIO) database, this paper explores the evolution of trade in value added (TiVA) between 2005 and 2015. Changes in international production systems are examined with particular attention given to four key sectors heavily integrated into global value chains (GVCs): Textiles and Apparel; Chemicals; ICT and Electronics; and, Motor Vehicles. Some insights into the roles played by services sectors and non-residents’ expenditure and, the employment and environmental impacts of GVCs, are also provided.

Considerable heterogeneity across countries and regions is revealed, particularly for East and Southeast Asian where China plays a key role. Services are increasingly important for manufactured exporting activities as well as for countries wishing to “upgrade” their activities to higher value added stages of production. Taking a consumption perspective suggests that national efforts to mitigate greenhouse gas (GHG) emissions could be affected by international outsourcing of production.


Keywords: CO2 Emissions Embodied in Trade, Trade in Value Added, Inter-Country Input-Output, International Trade, Trade in Employment
JEL: F15: International Economics / Trade / Economic Integration; F16: International Economics / Trade / Trade and Labor Market Interactions; R15: Urban, Rural, Regional, Real Estate, and Transportation Economics / General Regional Economics / General Regional Economics: Econometric and Input-Output Models; Other Models; C67: Mathematical and Quantitative Methods / Mathematical Methods; Programming Models; Mathematical and Simulation Modeling / Input-Output Models; F18: International Economics / Trade / Trade and Environment; F14: International Economics / Trade / Empirical Studies of Trade
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