Document Type

Working Paper

Publication Date



Regional Research Institute

Document Number

Working Paper 2018-01


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.


This is a revised version of Working Paper Number 2018-01. The earlier version is available under supplementary files.

Previous Versions

Jul 31 2019
Sep 14 2018