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American Economic Review· 2012Q1

Measuring the Upstreamness of Production and Trade Flows

Pol Antràs, Davin Chor, Thibault Fally, Russell Hillberry

Short summary

A new measure of industry upstreamness (average distance from final use) is developed and shown to be equivalent across two distinct approaches, also linking to forward linkages.

AI-generated from the title and abstract; the full text is not read.

Key points

  • Developed two equivalent approaches to measure industry upstreamness (average distance from final use).
  • The upstreamness measure is also interpretable in terms of forward linkages.
  • Constructed upstreamness for 426 US industries using 2002 input-output tables.
  • Applied the measure to analyze country-level determinants of export upstreamness using 2002 trade data.

AI-generated from the title and abstract; the full text is not read.

Abstract

We propose two distinct approaches to the measurement of industry upstreamness (or average distance from final use) and show that they yield an equivalent measure. Furthermore, we provide two additional interpretations of this measure, one of them related to the concept of forward linkages. We construct this measure for 426 industries using the 2002 US input-output Tables. We also construct our measure using data from selected countries in the OECD STAN database. Finally, we present an application of our measure that explores the determinants of the average upstreamness of exports at the country level using trade flows for 2002.

The authors' abstract, as published at the source. American Economic Review, 2012 · DOI ↗

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Field: General Economics, Econometrics and Finance

General Economics, Econometrics and FinanceEconomics, Econometrics and Finance