kww function

Koopman-Wang-Wei Decomposition of Gross Exports

This function performs the Koopman-Wang-Wei (2014) decomposition of a countries gross exports into 9 separate value added components.

kww(x)

Arguments

• x: an object of the class 'decompr' obtained from load_tables_vectors.

Returns

A data frame where a countries gross exports is decomposed into 9 components (columns), as detailed in Figure 1 of the AER paper:

Term	Description
DVA_FIN	Domestic VA in final goods exports.
DVA_INT	Domestic VA in intermediate exports absorbed by direct importers (used to produce a locally consumed final good).
DVA_INTrex	Domestic VA in intermediate exports reexported to third countries and absorbed there.
RDV_FIN	Domestic VA in intermediate exports that returns home via final imports.
RDV_INT	Domestic VA in intermediate exports that returns home via intermediate imports (used to produce a domestically consumed final good).
DDC	Double counted DVA in intermediate exports (arising from 2-way trade in intermediate goods).
FVA_FIN	Foreign VA in final goods exports.
FVA_INT	Foreign VA in intermediate exports.
FDC	Double counted FVA in intermediate exports (arising from 2-way trade in intermediate goods).

Examples

# Load example data
data(leather)

# Create intermediate object (class 'decompr')
decompr_object <- load_tables_vectors(leather)
 
# Perform the KWW decomposition
kww(decompr_object)

References

Koopman, R., Wang, Z., & Wei, S. J. (2014). Tracing value-added and double counting in gross exports. American Economic Review, 104(2), 459-94.

See Also

wwz, wwz2kww, decompr-package

Author(s)

Sebastian Krantz