On Monday 5 March, DG TRADE and DG GROWTH of EU Commission will jointly host in Brussels Ilaria Fusacchia and Luca Salvatici (Roma Tre University and Rossi-Doria Centre) in the Economic Seminar Series.
They will present the main results of Rossi-Doria Centre’s project for EU Commission titled: Trade in value added decomposition in the GTAP model
Abstract: Companies divide their operations across the word, from the design of the product and manufacturing of components to assembly and marketing, creating international production chains. The statistical bias created by attributing the full commercial value to the last country of origin can pervert the political debate on the origin of the imbalances and lead to misguided, and hence counter-productive, decisions. The challenge is to find the right statistical bridges between the different statistical frameworks and national accounting systems to ensure that international interactions resulting from globalisation are properly reflected (WTO). Global Supply Chain analysis can provide guidance on how this type of trade affects, at national level, manufacturing jobs, consumer prices and economic welfare.
Thanks to a joint DG GROW and DG TRADE effort, the project aims at developing a tool that allows disentangling trade in goods from trade in value added, in countries of origin and destination. The tool is developed using a well-known database and can be used within a commonly used modelling tool, available to both DGs. The seminar will focus on presenting a sample of results, the reasoning behind them and insights for policy analysis.