Increasing fragmentation of production is posing new challenges to the measurement of productivity. Traditional approaches focus on firms, industries or countries as the unit of analysis. In this article we argue that studies of global value chains (GVCs) are needed. We introduce the GVC accounting approach as a complement to traditional KLEMS type productivity studies. We define cost shares and productivity growth and show how they can be empirically implemented using synthetic input-output tables. We discuss advantages of the new approach, provide caveats and outline new areas of research and statistics in order to better understand today's global production systems.
|Number of pages||12|
|Journal||International Productivity Monitor|
|Publication status||Published - 2017|