Comments on: Collapsing trade in a Barbie world http://www.irisheconomy.ie/index.php/2009/06/18/collapsing-trade-in-a-barbie-world/ Sun, 01 Aug 2010 10:19:20 +0000 http://wordpress.org/?v=2.6.3 By: The Irish Economy » Blog Archive » Why did world trade fall so rapidly during the present crisis? http://www.irisheconomy.ie/index.php/2009/06/18/collapsing-trade-in-a-barbie-world/#comment-17055 The Irish Economy » Blog Archive » Why did world trade fall so rapidly during the present crisis? Mon, 21 Sep 2009 11:16:40 +0000 http://www.irisheconomy.ie/?p=2719#comment-17055 [...] more rapidly than at the start of the Great Depression. Problems associated with trade finance, and the vertical disintegration of modern manufacturing production, are the two that come up most [...] [...] more rapidly than at the start of the Great Depression. Problems associated with trade finance, and the vertical disintegration of modern manufacturing production, are the two that come up most [...]

]]> By: Michael Hennigan - Finfacts http://www.irisheconomy.ie/index.php/2009/06/18/collapsing-trade-in-a-barbie-world/#comment-9232 Michael Hennigan - Finfacts Sun, 21 Jun 2009 06:49:18 +0000 http://www.irisheconomy.ie/?p=2719#comment-9232 US researchers say trade statistics can mislead as much as inform. For every $300 iPod sold in the US, the politically volatile US trade deficit with China increases by about $150 (the factory cost). Yet, the value added to the product through assembly in China is probably a few dollars at most. In 2007, a teardown analysis of the 451 parts, which made up the 30-gigabyte video iPod, was used to to track the value-added from the US, across Asia and back to the US: http://pcic.merage.uci.edu/papers/2007/AppleiPod.pdf US researchers say trade statistics can mislead as much as inform. For every $300 iPod sold in the US, the politically volatile US trade deficit with China increases by about $150 (the factory cost). Yet, the value added to the product through assembly in China is probably a few dollars at most.

In 2007, a teardown analysis of the 451 parts, which made up the 30-gigabyte video iPod, was used to to track the value-added from the US, across Asia and back to the US:

http://pcic.merage.uci.edu/papers/2007/AppleiPod.pdf

]]> By: The Irish Economy » Blog Archive » Collapsing trade in a Barbie world | Youth Political Blog http://www.irisheconomy.ie/index.php/2009/06/18/collapsing-trade-in-a-barbie-world/#comment-9201 The Irish Economy » Blog Archive » Collapsing trade in a Barbie world | Youth Political Blog Fri, 19 Jun 2009 20:24:13 +0000 http://www.irisheconomy.ie/?p=2719#comment-9201 [...] Continued here: The Irish Economy » Blog Archive » Collapsing trade in a Barbie world [...] [...] Continued here: The Irish Economy » Blog Archive » Collapsing trade in a Barbie world [...]

]]> By: (Dés)Intégration verticale et élasticité par rapport au PIB du commerce « Rationalité Limitée http://www.irisheconomy.ie/index.php/2009/06/18/collapsing-trade-in-a-barbie-world/#comment-9169 (Dés)Intégration verticale et élasticité par rapport au PIB du commerce « Rationalité Limitée Fri, 19 Jun 2009 11:24:29 +0000 http://www.irisheconomy.ie/?p=2719#comment-9169 [...] verticale et élasticité par rapport au PIB du commerce Très instructive expérience de pensée de Kevin O’Rourke pour comprendre l’effet de l’intégration verticale (ou plus exactement de la [...] [...] verticale et élasticité par rapport au PIB du commerce Très instructive expérience de pensée de Kevin O’Rourke pour comprendre l’effet de l’intégration verticale (ou plus exactement de la [...]

]]> By: Philip Lane http://www.irisheconomy.ie/index.php/2009/06/18/collapsing-trade-in-a-barbie-world/#comment-9161 Philip Lane Fri, 19 Jun 2009 09:03:14 +0000 http://www.irisheconomy.ie/?p=2719#comment-9161 Johnson and Noguera (May 2009) have written a fascinating paper on trade in gross output versus trade in value added "Accounting for Intermediates: Production Sharing and Trade in Value Added" http://robjohnson41.googlepages.com/JohnsonNoguera_AfI_052009.pdf Johnson and Noguera (May 2009) have written a fascinating paper on trade in gross output versus trade in value added “Accounting for Intermediates: Production Sharing and Trade in Value Added” http://robjohnson41.googlepages.com/JohnsonNoguera_AfI_052009.pdf

]]> By: John Fitzgerald http://www.irisheconomy.ie/index.php/2009/06/18/collapsing-trade-in-a-barbie-world/#comment-9143 John Fitzgerald Fri, 19 Jun 2009 00:05:20 +0000 http://www.irisheconomy.ie/?p=2719#comment-9143 A move from a world where countries produce final products from basic inputs to one where there is vertical disintegration has produced a high elasticity of trade with respect to GDP over recent decades. If data were available for world trade in consumer goods - final products - the elasticity would be much lower. The consequence of this is also that for a given change in world trade the impact on domestic value added is falling. Much of the increase in exports is accounted for by imports. In the case of Ireland, input output tables from 1969 till 1985 show that the import content of exports rose steadily from 40% to 50%. Since then, while there has been some further increase, it has been limited. A move from a world where countries produce final products from basic inputs to one where there is vertical disintegration has produced a high elasticity of trade with respect to GDP over recent decades. If data were available for world trade in consumer goods - final products - the elasticity would be much lower.
The consequence of this is also that for a given change in world trade the impact on domestic value added is falling. Much of the increase in exports is accounted for by imports.
In the case of Ireland, input output tables from 1969 till 1985 show that the import content of exports rose steadily from 40% to 50%. Since then, while there has been some further increase, it has been limited.

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