Affiliation:
1. Faculty of Economics and Business, University of Groningen, PO Box 800, 9700 AV Groningen, The Netherlands (e-mail: )
Abstract
In a recent contribution to the AER, Koopman, Wang, and Wei (2014) proposed a decomposition of a country's gross exports into value-added components and double-counted terms. It is motivated by complex manipulation of basic accounting identities. In this comment we provide an alternative framework based on “hypothetical extraction.” This parsimonious approach provides a clear definition of domestic value added in exports and has a natural extension into decompositions of bilateral export flows. (JEL E01, E16, F14, F23, L14)
Publisher
American Economic Association
Subject
Economics and Econometrics
Cited by
142 articles.
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