One of the distinctive characteristics of the current globalisation process is the emergence of global
value chains. Within global value chains and international production networks, not only are final goods
traded internationally, but intermediate goods (parts and components) and, in recent years, services also
increasingly are. This trend significantly alters the economic relations between countries and increasingly
casts doubt on empirical indicators such as trade and FDI that are traditionally used to measure
globalisation. Input-output tables may provide much finer detail in describing current globalisation as they
offer information on the use of goods instead of the rather arbitrary classification schemes that divide
goods into intermediate and other categories. Moreover, input-output tables also incorporate information
on the use of services, enabling measurement of the increasing offshoring of service activities in today's
business activities. Based on the OECD Input-Output Database, which includes harmonised tables for 38
countries (of which 10 emerging non-OECD economies), this paper brings together empirical evidence on
the growing importance of global value chains and the increasing interdependence between countries.
Input-output indicators are presented for individual countries and individual industries, aiming to
demonstrate the changing characteristics of current globalisation.
The Measurement of Globalisation using International Input-Output Tables
Working paper
OECD Science, Technology and Industry Working Papers
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Abstract
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