Munich Personal RePEc Archive

A simple and accurate method to calculate domestic and foreign value-added in gross exports

Miroudot, Miroudot and Ye, Ming (2018): A simple and accurate method to calculate domestic and foreign value-added in gross exports.

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Abstract

In this paper, we propose a hypothetical extraction that provides a theoretically-funded measure of FVA in gross exports and we provide full expressions for a decomposition of gross exports into four terms: DVA, domestic double counting (DDC), FVA and foreign double counting (FDC). As in Los et al. (2016), the fact that we calculate a hypothetical GDP without the exports from a given country is the basis for validating the interpretation of the FVA term. Our DVA term is the same as Los et al. (2016).

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