A Probe into the Status of global countries’ Trade Positions in the Global Value Chain (GVC) - based on Value Added Trade Perspective and Network Modeling

Abstract

This study is concentrated on measuring the global value chain (GVC) using value added trade based on the network topology of bilateral trade specifically for 62 global economies listed in the WTO-OECD database. Intermediate trade has become the trend in global international trade which has occupied 63% of the total world trade. This study will intuitively observe the status of global countries’ positions in the international network. Value added trade has been used for measuring a country’s participation in GVC replacing the traditional index. Network analysis will be used to analyze the world trade pattern in 1995, 2000, 2005, 2008, 2009, 2010 and 2011 for a total of seven years. Our findings show that the global trade network is interconnected and more countries have established international trade relationship. In addition, distribution of global trade is still concentrated in a few countries, but the degree of power is declining; the heterogeneity of export is slightly higher than the import heterogeneity, which indicates that trade export is more dispersive than import. We also found that China, Russia, India, and Saudi Arabia became new core countries in 2011 and the position of the USA, Japan, Germany, the United Kingdom are stable.  The position of Korea and Mexico slightly decreased while Malta, Lithuania, Cyprus, Cambodia, Latvia, Iceland, and other countries are still maintained in the periphery area.

Keywords: global trade network, value added method, global value chain

JEL Classifications: C63, G21

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