[align=justify][box_out][box_in] Economists coined the term vertical specialization in 2001 to describe a country's use of imported intermediate parts or services as inputs in producing goods the country later exports—a common occurrence today in global trade. Traditionally, although exports were deducted from imports in calculating gross domestic product (GDP), policymakers did not have data specifically addressing the import content of exports. Today, new trade statistics are being developed to remedy this. These statistics show the national value-added content of exports after all imported input goods and business services have been subtracted.
The case of Sweden is illustrative. A 2010 report from the Swedish National Board of Trade examines data about manufacturing and services inputs and outputs for the Swedish economy in 1995 and 2005 and finds that the conventional gross trade figures inflate the value of exports in relation to GDP. The report finds that 33.5 percent of the total value
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Statistics : Posted by LamboWalker • on 04 Jul 2024, 04:02 • Replies 0 • Views 154
