decompr (version 6.9.0)

bm: Borin-Mancini Decomposition of Gross Exports

Description

Decomposes gross exports into value-added and Global Value Chain (GVC) components following the Borin and Mancini (2019) framework, as implemented in the Stata icio command (Belotti, Borin and Mancini 2021). It is the R counterpart of the decompose() function in the Julia package ICIO.jl, and operates on a decompr object created by load_tables_vectors.

Usage

bm(
  x,
  aggregation = c("country", "sector", "bilateral"),
  perspective = c("exporter", "world"),
  approach = c("source", "sink")
)

Value

A data.frame with one row per unit and one column per value-added term, preceded by factor identifier columns: Exporting_Country (country);

Exporting_Country, Exporting_Industry (sector); or Exporting_Country, Exporting_Industry, Importing_Country (bilateral). The attribute "decomposition" is set to "bm".

Arguments

x

an object of class decompr obtained from load_tables_vectors.

aggregation

character. The level of the decomposition: "country" (one row per exporting country), "sector" (one row per exporting country-industry), or "bilateral" (one row per exporting country-industry and importing country, excluding within-country flows). Default "country".

perspective

character. The accounting perspective defining the perimeter for double counting: "exporter" (exporting-country perspective, additive across sectors and destinations, 13 terms) or "world" (world perspective, 9 terms, only available for aggregation = "country"). Default "exporter".

approach

character. How double-counted items are allocated across shipments: "source" (value added recorded the first time it leaves the country of origin) or "sink" (the last time). "exporter" requires "source"; "world" requires "sink". Default "source".

Author

Sebastian Krantz

Details

For the default exporter / source perspective the decomposition yields 13 terms; the world / sink perspective (country level only, the "corrected KWW" decomposition) yields 9. All terms are in the same units as the input-output table (e.g. millions of USD). The following accounting identities hold: GEXP = DC + FC, DC = DVA + DDC, FC = FVA + FDC, DVA = VAX + REF, and (exporter/source only) GVC = GVCB + GVCF = GEXP - DAVAX and GVCB = FC + DDC.

GEXP	Gross exports.
DC / FC	Domestic / foreign content.
DVA / FVA	Domestic / foreign value added.
DDC / FDC	Domestic / foreign double counting.
VAX	Domestic value added absorbed abroad (Johnson and Noguera 2012).
REF	Reflection: domestic value added returning home.
DAVAX	Domestic value added directly absorbed by the importer.
GVC	GVC-related trade (value added crossing more than one border).
GVCB / GVCF	Backward / forward GVC participation.

The exporter / source decomposition is additive: the "sector" result is the sum of the "bilateral" result over importers, and the "country" result is the sum of the "sector" result over industries.

References

Borin, A. and Mancini, M. (2019). Measuring What Matters in Global Value Chains and Value-Added Trade. World Bank Policy Research Working Paper 8804.

Belotti, F., Borin, A. and Mancini, M. (2021). icio: Economic analysis with intercountry input-output tables. The Stata Journal, 21(3), 708-755.

See Also

kww, wwz, leontief, decompr-package

Examples

# Load example data and create a 'decompr' object
data(leather)
dec <- load_tables_vectors(leather)

# Country-level decomposition (exporter perspective, source approach; 13 terms)
bm(dec)

# Country-level "corrected KWW" (world perspective, sink approach; 9 terms)
bm(dec, perspective = "world", approach = "sink")

# Sector- and bilateral-sector-level decompositions
bm(dec, aggregation = "sector")
bm(dec, aggregation = "bilateral")