Gains from Export – the Input Output Approach
Gains from Export – the Input Output Approach

Summary/Abstract: The differences between statistics of gross exports and value added in exports are already considerable and growing. Hence, export policy analysis based on gross trade allows will grossly overestimate the impact of exports. The Slovak Republic is mainly positioned in the downstream activities of GVCs. This contributes to the relatively limited domestic value added created by exports. The aim of this paper is to investigate the gains from export for the Slovak economy based on input-output analysis. The data covers period 2000-2014 and comes from World Input–Output Database (WIOD). The results show that Slovak exporting sectors generate lower product multiplication effects for Slovak economy and their effects on domestic value added is even weakening. The lowest value added across exporting sectors generates automotive industry and computer, electronic and optical products manufacturing. The automotive sector reduces the share of value added per unit of production during the period, although its total production significantly increases. However, the indicator of value added generated by export shows that in absolute value, the automotive industry generates in 2014 the most value added among all other sectors and its value even increases over time.

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