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Bought, Sold, and Bought Again: The Impact of Complex Value Chains on Export Elasticities

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dc.contributor.authorde Soyres, Francois
dc.contributor.authorFrohm, Erik
dc.contributor.authorGunnella, Vanessa
dc.contributor.authorPavlova, Elena
dc.date.accessioned2018-07-30T20:51:49Z
dc.date.available2018-07-30T20:51:49Z
dc.date.issued2018-07
dc.description.abstractGlobal value chain participation affects the exchange rate pass-through to export prices and export volumes. The paper develops a partial equilibrium model of international trade with cross-border production and shows that higher participation in global value chains reduces the elasticities. Specifically, a higher share of foreign value added in exports reduces the exchange rate pass-through to export prices and export volumes. A greater share of exports that return as imports also reduces the responsiveness of export volumes to changes in bilateral exchange rates. Finally, exports of inputs that are further re-exported increase the responsiveness to the trading partner's effective exchange rate. Using a novel sector-level panel dataset with 40 countries, the analysis tests and finds strong empirical support for the theoretical predictions. The paper further shows that some sectors in some countries can even experience a decline in gross exports when their currency depreciates.en
dc.identifierhttp://documents.worldbank.org/curated/en/816441531511812643/Bought-sold-and-bought-again-the-impact-of-complex-value-chains-on-export-elasticities
dc.identifier.doi10.1596/1813-9450-8535
dc.identifier.urihttps://hdl.handle.net/10986/30070
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 8535
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectGLOBAL VALUE CHAINS
dc.subjectEXPORT ELASTICITY
dc.subjectCURRENCY UNION
dc.subjectEXCHANGE RATES
dc.subjectEXPORT COMPETITIVENESS
dc.subjectSUBSTITUTION
dc.titleBought, Sold, and Bought Againen
dc.title.subtitleThe Impact of Complex Value Chains on Export Elasticitiesen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleBought, Sold, and Bought Again: The Impact of Complex Value Chains on Export Elasticities
okr.date.disclosure2018-07-13
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/816441531511812643/Bought-sold-and-bought-again-the-impact-of-complex-value-chains-on-export-elasticities
okr.guid816441531511812643
okr.identifier.doi10.1596/1813-9450-8535
okr.identifier.externaldocumentum090224b085d8a925_1_0
okr.identifier.internaldocumentum30258970
okr.identifier.reportWPS8535
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/816441531511812643/pdf/WPS8535.pdfen
okr.statistics.combined3501
okr.statistics.dr816441531511812643
okr.statistics.drstats2942
okr.topicFinance and Financial Sector Development::Currencies and Exchange Rates
okr.topicInternational Economics and Trade::Export Competitiveness
okr.topicInternational Economics and Trade::Trade and Multilateral Issues
okr.topicPrivate Sector Development::Global Value Chains and Business Clustering
okr.topicPrivate Sector Development::Private Sector Economics
okr.unitOffice of the Chief Economist, Middle East and North Africa Region
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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