Measuring the EU value added embodied in EU foreign exports by consolidating 27 national supply and use tables for 2000-2007

Maaike C. Bouwmeester, Jan Oosterhaven, José M. Rueda-Cantuche

Research output: Working paperAcademic

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Abstract

This paper develops a method to consolidate national supply-use tables (SUTs) into a single supra-regional SUT. The method deals with mirror trade statistics problems, such as the different valuation of imports and exports, and it corrects for the double-counting of re-exports. To test the contribution of the various construction steps, the paper decomposes the EU value added that is embodied in the EU exports to third countries into seven components. When the national SUTs for the period 2000-2007 are used, neglecting intra-EU spillover and feedback effects between the 27 EU-members results in an underestimation of the embodied value added of 12-15%. Not consolidating the national tables leads to a further under-estimation of 11-16%. Both types of errors are substantial. With these underestimations removed, the exports to third countries still only explain around 11% of the EU27 GDP.
Original languageEnglish
Place of PublicationGroningen
PublisherUniversity of Groningen, SOM research school
Number of pages34
Volume14004-EEF
Publication statusPublished - 2014

Publication series

NameSOM Research Reports
PublisherUniversity of Groningen, SOM Research School
Volume14004-EEF

Keywords

  • value added in trade
  • intra-EU spillovers effects
  • re-exports
  • mirror trade problems
  • supply-use tables

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