NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
loading...

Global Value Chains and Effective Exchange Rates at the Country-Sector Level

Nikhil Patel, Zhi Wang, Shang-Jin Wei

NBER Working Paper No. 20236
Issued in June 2014, Revised in March 2019
NBER Program(s):The International Finance and Macroeconomics Program, The International Trade and Investment Program

The real effective exchange rate (REER) is one of the most cited statistical constructs in open-economy macroeconomics. We show that the models used to compute these numbers are not rich enough to allow for the rising importance of global value chains. Moreover, because different sectors within a country participate in international production sharing at different stages, sector level variations are also important for determining competitiveness. Incorporating these features, we develop a framework to compute REER at both the sector and country level and apply it on inter-country input-output tables to study the properties of the new measures of REER for 35 sectors in 40 countries.

download in pdf format
   (1239 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w20236

Users who downloaded this paper also downloaded* these:
Koopman, Wang, and Wei w14109 How Much of Chinese Exports is Really Made In China? Assessing Domestic Value-Added When Processing Trade is Pervasive
AntrĂ s and Chor w18163 Organizing the Global Value Chain
Costinot, Vogel, and Wang w16936 An Elementary Theory of Global Supply Chains
Koopman, Wang, and Wei w18579 Tracing Value-added and Double Counting in Gross Exports
Johnson and Noguera w18186 Fragmentation and Trade in Value Added over Four Decades
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us