Previous studies have argued that global value chains (GVCs) have increased the sensitivity of trade to external business cycle shocks. This may occur either because GVC trade is concentrated in durable goods industries, which are known to have high income elasticities (a composition effect), or...

We investigate whether global value chains have increased the sensitivity of Chinese trade to foreign income shocks. This may occur through either composition or supply chain effects. We find evidence for the former, but not the latter.

This paper develops tools to examine selected major issues in the Indian economy. The studycomputes the potential growth rate of the economy and the agricultural sector, extends theanalysis of the fiscal stimulus and its effects, and estimates the short and long run elasticitiesof India's trade....

This paper examines the implications of global production sharing for the measurement of price elasticities in international trade using a unique disaggregated dataset relating to US manufacturing imports. It is found that imports of parts and components are remarkably less sensitive to changes...

The paper estimates the equilibrium real exchange rate (ERER) in Russia for 1995-20065 using the partial-equilibrium version of the trade-balance approach. The three-good framework is applied, allowing distinction between the RER for imports and RER for exports. The terms of trade are viewed as...

Estimates of the elasticity of substitution between domestic and foreign varieties are small in macroeconomic data, but substantially larger in disaggregated microeconomic studies. This may be an artifact of heterogeneity. We use disaggregated multilateral trade data to structurally identify...

We decompose global export growth into a structural and a pure growth component in order to highlight the importance of structural change at the regional and industry level for the impressive growth performance of international trade. For this, we combine data on exports, output and...

Computable General Equilibrium (CGE) models have been widely used for quantitative analysis of global economic issues. However, CGE models are frequently criticized for resting on weak empirical foundations. This paper builds on recent work in macro-econometric estimation, developing an approach...