Demand for Value Added and Value-Added Exchange Rates [electronic resource] Bems, Rudolfs..

Author/Creator:

Bems, Rudolfs .

Publication:

Washington, D.C. : International Monetary Fund, 2015.

Series:

IMF eLibrary
IMF Working Papers: Working Paper No. 15/199

Format/Description:

Government document
Book
1 online resource (70 p.)

Local subjects:

Demand.
Export competitiveness.
General.
Global supply chains.
Goods.
Price elasticity.
Production.
Real effective exchange rate.
Real effective exchange rates.

Summary:

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.

Notes:

Description based on print version record.

Contributor:

Bems, Rudolfs.
Johnson, Robert C.

Other format:

Print Version:

ISBN:

1513595040
9781513595047

ISSN:

1018-5941

Publisher Number:

10.5089/9781513595047.001

Access Restriction:

Restricted for use by site license.

Online:

Connect to full text
http://hdl.library.upenn.edu/1017.12/1522563

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