This study introduces a new dataset of bilateral value added trade costs for the goods and services sectors, based on a measure derived from the micro-founded gravity model and using data from the OECD-WTO TiVA database. This is the first study to calculate value added trade costs for a set of...

Trade costs such as applied tariffs, transportation and insurance costs are amplified as they pass through the multiple production steps associated with modern supply chains. This so-called "cascade effect" arises since trade costs accumulate as intermediate goods are imported and then...