NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

NBER Working Papers and Publications by Kunfu Zhu

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Working Papers and Chapters and Reporter Articles

March 2017Characterizing Global Value Chains: Production Length and Upstreamness
with Zhi Wang, Shang-Jin Wei, Xinding Yu: w23261
We develop a new set of country-sector level indicators of Global Value Chains (GVCs) characteristics in terms of average production length, and relative “upstreamness” on a production network, which we argue are better than the existing ones in the literature. We distinguish production activities into four types: those whose value added is both generated and absorbed within the country, those whose value-added crosses borders only once for consumption, those whose value added crosses borders only once for production, and those whose value added crosses borders more than once. Based on such an accounting framework, we further decompose total production length into different segments. Using these measures, we characterize cross-country production sharing patterns and their evolution for 56 ...
Measures of Participation in Global Value Chains and Global Business Cycles
with Zhi Wang, Shang-Jin Wei, Xinding Yu: w23222
This paper makes two methodological contributions. First, it proposes a framework to decompose total production activities at the country, sector, or country-sector level, to different types, depending on whether they are for pure domestic demand, traditional international trade, simple GVC activities, and complex GVC activities. Second, it proposes a pair of GVC participation indices that improves upon the measures in the existing literature. We apply this decomposition framework to a Global Input-Output Database (WIOD) that cover 44 countries and 56 industries from 2000 to2014 to uncover evolving compositions of different production activities. We also show that complex GVC activities co-move with global GDP growth more strongly than other types of production activities.
November 2013Quantifying International Production Sharing at the Bilateral and Sector Levels
with Zhi Wang, Shang-Jin Wei: w19677
This paper generalizes the gross exports accounting framework at the country level, recently proposed by Koopman, Wang, and Wei (2014), to one that decomposes gross trade flows (for both exports and imports) at the sector, bilateral, or bilateral sector level. We overcome major technical challenges for such generalization by allocating bilateral intermediate trade flows into their final destination of absorption. We also point out two major shortcomings associated with the VAX ratio concept often used in the literature and ways to overcome them. We present the dis-aggregated decomposition results for bilateral sector level gross trade flows among 40 trading nations in 35 sectors from 1995 to 2011 based on the WIOD database.

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