A new concept for measuring the value of foreign trade based on newly added value in European Union countries Cover Image

Нови концепт за мерење вредности спољне трговине на бази новододате вредности у земљама Европске уније
A new concept for measuring the value of foreign trade based on newly added value in European Union countries

Author(s): Predrag Bjelić, Ivana Popović Petrović, Radmila Dragutinović Mitrović
Subject(s): Economy
Published by: Институт за међународну политику и привреду
Keywords: Global value chains;fragmentation of production;value added export;measuring trade in value added;input-output tables

Summary/Abstract: The Global Value Chains are a modern phenomenon and they are doubtless changing the structure of the international production and trade. The process of producing goods, through all phases of the production, from raw materials, through intermediaries, until they become finished products in contemporary world, can not be done or finished in only one country. Products which could be finished only in one country become rare. The process of the production has become more fragmented across borders. This fragmentation of the production process, or its slicing, has augmented in last decades and has raised the question of value added export, comparing it with the gross export value. European Union countries along with other OECD countries are pillars of that fragmentation of production and they are drivers of trading in components. Traditional statistics monitoring is no more able to give answers to the question what a real export of one country is, because it measures gross flows of goods and services every time they change the customs teritory. New statistical approach has pointed to the growing role of intermediate goods and services as contributors to export performances of countries and to a more important role of services in international trade, as well as the connectivity at the global level, which has became particularly obvious after the downturn caused by the Great economic crisis.

  • Issue Year: 2013
  • Issue No: 43-44
  • Page Range: 153-164
  • Page Count: 12
  • Language: Serbian