Document Type
Working Paper
Publication Date
1-1-2018
College/Unit
Regional Research Institute
Document Number
Working Paper 2018-01
Abstract
Measures devised to quantify value chain position have been used increasingly in recent years. While the constructs underlying these measures are meaningful, this paper identifies an overlooked implementation problem. Proposed algorithms have been applied as though the underlying data represent flows. Implementation data are drawn from modern input-output accounting frameworks that recognize secondary production explicitly. Unadjusted Use matrices are not conventional flows matrices because they do not identify the industries from which commodities originate. We demonstrate logical inconsistencies that arise, provide correct flow matrix formulations for upstreamness and downstreamness measures, and present empirical comparisons of correct and incorrect formulations.
Digital Commons Citation
Aroca, Patricio and Jackson, Randall, "Value Chains: Production Upstreamness and Downstreamness Revisited" (2018). Regional Research Institute Working Papers. 35.
https://researchrepository.wvu.edu/rri_pubs/35
Comments
This is a revised version of Working Paper Number 2018-01. The earlier version is available under supplementary files.