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Robert B. Koopman

Bio: Robert B. Koopman is an academic researcher from World Trade Organization. The author has contributed to research in topics: Comparative advantage & Double counting (accounting). The author has an hindex of 14, co-authored 41 publications receiving 3367 citations. Previous affiliations of Robert B. Koopman include Graduate Institute of International and Development Studies & National Research University – Higher School of Economics.

Papers
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TL;DR: The authors proposed a framework for gross exports accounting that breaks up a country's gross exports into various value-added components by source and additional double counted terms, identifying which parts of the official trade data are double counted and the sources of the double counting.
Abstract: This paper proposes a framework for gross exports accounting that breaks up a country's gross exports into various value-added components by source and additional double counted terms. By identifying which parts of the official trade data are double counted and the sources of the double counting, it bridges official trade (in gross value terms) and national accounts statistics (in value added terms). Our parsimonious framework integrates all previous measures of vertical specialization and value-added trade in the literature into a unified framework. To illustrate the potential of such a method, we present a number of applications including re-computing revealed comparative advantages and the magnifying impact of multi-stage production on trade costs.

1,036 citations

Journal ArticleDOI
TL;DR: In this paper, the authors proposed an accounting framework that breaks up a country's gross exports into various value-added components by source and additional double-counted terms, and integrated all previous measures of vertical specialization and value added trade into a unified framework.
Abstract: This paper proposes an accounting framework that breaks up a country’s gross exports into various value-added components by source and additional double-counted terms. Our parsimonious framework bridges a gap between official trade statistics ( in gross value terms) and national accounts (in value-added terms), and integrates all previous measures of vertical specialization and value-added trade in the literature into a unified framework. To illustrate the potential of such a method, we present a number of applications including re-computing revealed comparative advantages and the magnifying impact of multi-stage production on trade costs. (JEL E01, E16, F14, F23, L14) As different stages of production are now regularly performed in different countries, intermediate inputs cross borders multiple times. As a result, traditional trade statistics become increasingly less reliable as a gauge of the value contributed by any particular country. This paper integrates and generalizes the many attempts in the literature at tracing value added by country and measuring vertical specialization in international trade. We provide a unified conceptual framework that is more comprehensive than the current literature. By design, this is an accounting exercise, and does not directly examine the causes and the consequences of global production chains. However, an accurate and well-defined conceptual framework to account for value added by sources is a necessary step toward a better under standing of all these issues. Supply chains can be described as a system of value-added sources and destinations. Within a supply chain, each producer purchases inputs and then adds value, which is included in the cost of the next stage of production. At each stage, the value added equals the value paid to the factors of production in the exporting country. However, as all official trade statistics are measured in gross terms, which

863 citations

ReportDOI
TL;DR: In this article, a new conceptual framework is presented to measure sources of value-added trade by country in global production networks, with a parsimonious decomposition of gross exports that eliminates double counting.
Abstract: This paper presents a new conceptual framework to measure sources of value-added trade by country in global production networks. With a parsimonious decomposition of gross exports that eliminates "double counting", it integrates all previous measures of vertical specialization and value-added trade in the literature. We apply the framework to the most recent appropriate data (2004). Among emerging markets, East Asian countries are the most globally integrated. Among major developed economies, the US is the most integrated in some aspects, and Japan in others. These regional differences also affect exporters’ trade costs.

658 citations

ReportDOI
TL;DR: This article developed a general formula for computing domestic and foreign contents when processing exports are pervasive, and proposed a mathematical programming procedure to estimate these coefficients by combining information from detailed trade statistics with input-output tables.
Abstract: As China’s export juggernaut employs many imported inputs, there are many policy questions for which it is crucial to know the extent of domestic value added (DVA) in its exports. The best known approach is the concept of “vertical specialization” proposed by Hummels, Ishii and Yi (2001) (HIY for short). This approach is not appropriate for countries that engage in a lot of tariff/tax-favored processing exports such as China, Mexico, and Vietnam. We develop a general formula for computing domestic and foreign contents when processing exports are pervasive. Because this new formula requires some input-output coefficients not typically available from a conventional input-output table, we propose a mathematical programming procedure to estimate these coefficients by combining information from detailed trade statistics with input-output tables. By our estimation, the share of foreign content in China’s exports is at about 50%, almost twice the estimate given by the HIY formula. There are also interesting variations across sectors and firm ownership. Those sectors that are likely labeled as relatively sophisticated such as electronic devices have particularly high foreign content (about 80%). Foreign-invested firms also tend to have higher foreign content in their exports than do domestic firms.

464 citations

Journal ArticleDOI
TL;DR: In this article, the authors proposed a method for computing domestic and foreign contents that allows for processing trade and found that the share of domestic content in manufactured exports was about 50% before China's WTO membership, and has risen to nearly 60% since then.

423 citations


Cited by
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Journal ArticleDOI
TL;DR: This paper analyzed the effect of Chinese import competition between 1990 and 2007 on US local labor markets, exploiting cross-market variation in import exposure stemming from initial diffe cerence to US labor markets.
Abstract: We analyze the effect of rising Chinese import competition between 1990 and 2007 on US local labor markets, exploiting cross-market variation in import exposure stemming from initial diffe...

2,818 citations

Journal ArticleDOI
TL;DR: The World Input-Output Database (WIOD) as mentioned in this paper contains annual time-series of world input-output tables and factor requirements covering the period from 1995 to 2011, and illustrates its usefulness by analyzing the geographical and factorial distribution of value added in global automotive production.
Abstract: This article provides guidance to prudent use of the World Input–Output Database (WIOD) in analyses of international trade. The WIOD contains annual time-series of world input–output tables and factor requirements covering the period from 1995 to 2011. Underlying concepts, construction methods and data sources are introduced, pointing out particular strengths and weaknesses. We illustrate its usefulness by analyzing the geographical and factorial distribution of value added in global automotive production and show increasing fragmentation, both within and across regions. Possible improvements and extensions to the data are discussed.

1,910 citations

Journal ArticleDOI
TL;DR: In this paper, the authors combine input-output and bilateral trade data to quantify cross-border production linkages, and compute bilateral trade in value added for 87 countries and regions.

1,427 citations

Journal ArticleDOI
TL;DR: This paper examined the impact of Chinese import competition on broad measures of technical change (patenting, IT, and TFP) using new panel data across twelve European countries from 1996 to 2007 and found that the absolute volume of innovation increases within the firms most affected by Chinese imports in their output markets.
Abstract: We examine the impact of Chinese import competition on broad measures of technical change—patenting, IT, and TFP—using new panel data across twelve European countries from 1996 to 2007. In particular, we establish that the absolute volume of innovation increases within the firms most affected by Chinese imports in their output markets. We correct for endogeneity using the removal of product-specific quotas following China's entry into the World Trade Organization in 2001. Chinese import competition led to increased technical change within firms and reallocated employment between firms towards more technologically advanced firms. These within and between effects were about equal in magnitude, and account for 14% of European technology upgrading over 2000–7 (and even more when we allow for offshoring to China). Rising Chinese import competition also led to falls in employment and the share of unskilled workers. In contrast to low-wage nations like China, developed countries had no significant effect on innovation.

1,139 citations

Posted Content
TL;DR: The authors proposed a framework for gross exports accounting that breaks up a country's gross exports into various value-added components by source and additional double counted terms, identifying which parts of the official trade data are double counted and the sources of the double counting.
Abstract: This paper proposes a framework for gross exports accounting that breaks up a country's gross exports into various value-added components by source and additional double counted terms. By identifying which parts of the official trade data are double counted and the sources of the double counting, it bridges official trade (in gross value terms) and national accounts statistics (in value added terms). Our parsimonious framework integrates all previous measures of vertical specialization and value-added trade in the literature into a unified framework. To illustrate the potential of such a method, we present a number of applications including re-computing revealed comparative advantages and the magnifying impact of multi-stage production on trade costs.

1,036 citations