mapping global value chains: international input-output table

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Satoshi InomataIDE-JETRO

Mapping Global Value Chains: International Input-Output Table

“3E” HOT TOPICS

- Employment and poverty

- Environmental issues

- Economic integration

２００９年のiPhone小売価格

＝＄５００（Apple利益率64%）

＄３３１＄７

＄１６２

International value distribution of iPhone

Retail price of iPhone in 2009

= $500(64% margin for

the Apple)

Cost of parts for iPhone3GManufacturer Components Unit Price

Toshiba (Japan) Flash Memory US$24.00Display Module US$19.25Touch Screen US$16.00

Samsung (Korea) Application Processor US$14.46SDRAM-Mobile DDR US$8.50

Infineon (Germany) Baseband US$13.00Camera Module US$9.55RF Transceiver US$2.80GPS Receiver US$2.25Power IC RF Function US$1.25

Broadcom (US) Bluetooth/FM/WLAN US$5.95Numonyx (US) Memory MCP US$3.65Murata (Japan) FEM US$1.35

Dialog Semiconductor(Germany)

Power IC Application ProcessorFunction

US$1.30

Cirrus Logic (US) Audio Codec US$1.15Others US$48.00

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* Analytical focus is limited to a particular product/firm. Not appropriate for economic analyses at the national level.

* Firm-level data does not explicitly present “compensation of employees”. 

* The approach only considers the value-added structure of direct input suppliers (the first tier).

Weakness of “firm-level” approach

→ 　 International Input-Output Analysis

Automobiles(Y10 billion)

Rough steel(Y8 million)

Electricity(Y400,000)

Coal products(Y100,000)

Petroleum products(Y40,000)

Steel(Y12 million)

Wholesale(Y2 million)

Road freight transport(Y400,000)

Sea shipping(Y200,000)

Dye(Y3.5 million)

Intermediate organicchemical products

(Y500,000)

Composite plastics(Y200,000)

Electricity(Y100,000)

Wood pulp(Y100,000)

Wholesale(Y100,000)

Chemical fiber(Y2.1 million)

Financing(Y300,000)

Wholesale(Y300,000)

Car parts(Y260 million)

Cold-finished steel(Y60 million)

Steel shar slit(Y20 million)

Paint(Y17 million)

Composite rubber(Y30 million)

Carbon black(Y10 million)

Silk and rayon textiles(Y10 million)

Raw rubber (imported)(Y10 million)

Car chassis(Y650 million)

Tires and inner tubes

Glass products(Y130 million)

Internal-combustionengines

(Y1.52 billion)

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InitialImpact

1st-roundImpacts

2nd-roundImpacts

3rd-roundImpacts

4th-roundImpacts

Value-added

Value-added

Value-added

Value-added

Value-added

Value-added

Value-addedValue-addedValue-addedValue-added

Value-added

Value-addedValue-added

Value-added

Value-addedValue-addedValue-addedValue-added

Value-added

Value-addedValue-added

Value-added

Value-addedValue-addedValue-addedValue-added

Value-added

Value-addedValue-addedValue-added

Value propagation (car industry)

Agri- Manu- Services Agri- Manu- Services Cons- Invest Cons- Invest Export

culture facturing culture facturing umption -ment umption -ment to RoW

Agriculture

Manufacturing

Services

Agriculture

Manufacturing

Services

Agriculture

Manufacturing

Services

Wages

Profits

Depreciation

Taxes

LUW

Intermediate DemandU.S.A.

Final DemandU.S.A.

Final DemandCHINA

LCW

U.S

.A.

Intermediate DemandCHINA

CH

INA

VC

RE

ST

OF

TH

EW

OR

LD

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VU

Bilateral IIOT between

China and USA

Main IIOT initiativesDatabase Producing

organisationReference years Number of

countriesIndustry/ productclassification

AIIOT IDE- J ETRO 1975 1985 1990、 、 、1995 2000 2005、 、

１０ (1975)５６ 1985-95)７８（ (2000-05)７６

EORA University ofSydney

1990-2009:yearly Approx. １５０２０～５００

EXIOPOLDatabase(CREEA)

EuropeanCommission

2000 + ROW４３ industries１２９ products１２９

GTAP-MRIO PurdueUniversity

1990 1992 1995、 、 、1997 2001 2004、 、 、2007

１２９ industries５７

ICIO OECD 1995 2000 2005、 、 、2008 2009、

+ ROW５６ industries１８

WIOD EuropeanCommission

1995-2011 yearly： + ROW４０ industries３５ products５９

Value-added

Productionprocess

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“Smiley Curve”

Value-added

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DownstreamUpstream

How to evaluate country’s relative position

Backwardlength

Forward length

China1985

China2005

Indonesia

JapanKorea

Malaysia

Chinese Taipei

Philippines

SingaporeThailand

USA

2.7

2.9

3.1

3.3

3.5

3.7

3.9

2.7 2.9 3.1 3.3 3.5 3.7 3.9

Upstream

Downstream

Longersupply chains

Shorter supplychains

Backward APL

Fo

rwar

d A

PL

Backward Length

Fo

rwa

rd

Le

ng

th

1985

2000

China

China

Indonesia

Indonesia

Japan

Japan

Korea

Korea

Malaysia

Malaysia

Taiwan

Taiwan

Philippines

PhilippinesSingapore

SingaporeThailand

Thailand

USA

USA

1985

2005

DownstreamUpstream

0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000

China

Japan

KoreaTraditional measurement

Value-added measurement

Million US$

33%

The US trade deficits:Traditional vs value-added measurement

Trade in Value-addedmeasures

international trade asa transfer of employment

opportunities. a transfer of CO2 emission

(carbon footprints). a flow of values

rather than of products.

Trade in value-added approach

• offers a better measurement of bilateral trade in the world of increasing production sharing among countries.

• can be a core apparatus for linking trade policies to crosscutting economic and/or social issues like job creation, poverty alleviation, and energy and environmental planning.

Thank you !!

Average Propagation Length (APL)

Dietzenbacher, E., I. Romero, and N.S. Bosma (2005)

Ind A Ind EInd DInd CInd B

(3)(1) (2) (4)

Ind C

Ind B

Ind C

Ind E

Ind D

Ind D

Ind E

Ind E

Ind D

(1)(2)

(1)

(3)

(4)

(3)

(2)

Industry A →Industry E

Ind EInd DInd CInd BInd A

(4)

(4)(2)(1) (3)

Ind C

Ind B

Ind C

Ind E

Ind D

Ind D

Ind E

Ind E

Ind D

(1)(2)

(1)

(3)(3)

(2)

Industry A →Industry E

l(2) = 50%

l(4) = 10%

l(3) = 30%

l(4) = 10%

lae = 1 x 0% + 2 x 50% + 3 x 30% + 4 x (10+10)% + 5 x 0% + …= 2.7

Weighted average of the number of production stages in supply chains.

= The length of supply chains

Value-added

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BackwardAPL

Forward APL

DownstreamUpstream

Value-added

Productionprocess

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Final products

Value-addedTrade in goods and services

Agri & Manu- Service Cons- Invest Export Import TotalMining fact'ing umption -ment Output

Agri & Mining ８００ １８００ ２００ ６００ ４００ ３００ -１００ ４０００

Manufacturing１６００ ６００ ５００ ０ ３５０ ２００ -２５０ ３０００

Service ４００ ３００ ９００ ３５０ ５０ ０ ０ ２０００

Wages ８００ ２００ ２５０

Profits ２５０ ５０ １００

Depreciation １００ ３０ ４０

Taxes ５０ ２０ １０

Total Input ４０００ ３０００ ２０００

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Intermediate Transaction Final Demand

Schematic image of an I-O table

２００９年のiPhone小売価格

＝＄５００（Apple利益率64%）

＄３３１＄７

＄１６２

International value distribution of iPhone

Retail price of iPhone in 2009

= $500(64% margin for

the Apple)

The US trade deficits with China（ 1991 ＝ 100 ）