Structural Changes in the Global Value Chain: Analysis of Length and Position in East Asia

Abstract This paper uses several global input-output tables to analyze changes in the global value chains (GVCs) from the 1990s to the 2020s, with a focus on East Asia. The main feature of the study is that we combine upstreamness and downstreamness, which express GVCs quantitatively, to calculate two indicators "length of GVC" and "position on GVC"for analysis. Our findings are as follows: First, the values of these indicators are consistent with our intuitive perceptions of the position of each country and industry in GVCs. Second, these indicators capture structural changes in GVCs. The length of GVCs in the world has increased in the 2000s and slowed down in the 2010s, which is consistent with the expansion of global trade in the 2000s and stagnation in the 2010s, known as slow trade. Third, these figures can also be used to analyze some events in the global economy, such as the impact of the US-China trade friction. Finally, the position on GVCs could be used in analyzing the competitiveness of industries in combination with the value-added ratio. JEL Code: C67, F50, F52