Demand for Value Added and Value-Added Exchange Rates /

We examine the role of cross-border input linkages in governing how international relative price changes influence demand for domestic value added. We define a novel value-added real effective exchange rate (REER), which aggregates bilateral value-added price changes, and link this REER to demand fo...

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Detalles Bibliográficos
Autor Principal: Bems, Rudolfs
Outros autores: Johnson, Robert
Formato: Revista
Idioma:English
Publicado: Washington, D.C. : International Monetary Fund, 2015.
Series:IMF Working Papers; Working Paper ; No. 2015/199
Acceso en liña:Full text available on IMF
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520 3 |a We examine the role of cross-border input linkages in governing how international relative price changes influence demand for domestic value added. We define a novel value-added real effective exchange rate (REER), which aggregates bilateral value-added price changes, and link this REER to demand for value added. Input linkages enable countries to gain competitiveness following depreciations by supply chain partners, and hence counterbalance beggar-thy-neighbor effects. Cross-country differences in input linkages also imply that the elasticity of demand for value added is country specific. Using global input-output data, we demonstrate these conceptual insights are quantitatively important and compute historical value-added REERs. 
538 |a Mode of access: Internet 
700 1 |a Johnson, Robert. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2015/199 
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