wwz function

Wang-Wei-Zhu Decomposition of Gross Exports

This function performs the Wang-Wei-Zhu decomposition of country-sector level gross exports into 16 value added components by importing country.

wwz(x, verbose = FALSE)

Arguments

• x: an object of the class 'decompr' obtained from load_tables_vectors.
• verbose: logical, should timings of the calculation be displayed? Default is FALSE

Returns

A data frame with exports decomposed into 16 components (columns), as detailed in Table E1 in the appendix of the paper, and additional diagnostic items:

Term	Description
DVA_FIN	Domestic VA in final goods exports.
DVA_INT	Domestic VA in intermediate exports used by direct importer to produce domestic final goods consumed at home.
DVA_INTrexI1	Domestic VA in intermediate exports used by the direct importer to produce intermediate exports for production of final goods in third countries that are then imported and consumed by the direct importer.
DVA_INTrexF	Domestic VA in intermediate exports used by the direct importer to produce final goods exports to third countries.
DVA_INTrexI2	Domestic VA in Intermediate exports used by the direct importer to produce intermediate exports to third countries.
RDV_INT	Domestic VA in intermediate exports that returns via intermediate imports (i.e. is used to produce a locally consumed final good).
RDV_FIN	Domestic VA in intermediate exports that returns home via final goods imports from the direct importer.
RDV_FIN2	Domestic VA in intermediate exports that returns home via in final goods imports from third countries.
OVA_FIN	Third countries’ VA in final goods exports.
MVA_FIN	Direct importer’s VA in final goods exports.
OVA_INT	Third countries’ VA in intermediate exports.
MVA_INT	Direct importer’s VA in intermediate exports.
DDC_FIN	Double counted Domestic VA used to produce final goods exports.
DDC_INT	Double counted Domestic VA used to produce intermediate exports.
ODC	Double counted third countries’ VA in home country’s exports production.
MDC	Double counted direct importer’s VA in home country’s exports production.
Diagnostic Item	Description
texp	Total Exports (matrix 'ESR' from load_tables_vectors ).
texpint	Exports for intermediate production (matrix 'Eint' from load_tables_vectors ).
texpfd	Exports for final demand (matrix 'Efd' from load_tables_vectors ).
texpdiff	Difference between Total Exports and the sum of the 16 terms.
texpdiffpercent	... in percent of total exports.
texpfddiff	Difference between Final Exports and the sum of terms DVA_FIN, OVA_FIN and MVA_FIN.
texpfddiffpercent	... in percent of final exports.
texpintdiff	Difference between Intermediate Exports and the sum of all the remaining terms (except DVA_FIN, OVA_FIN and MVA_FIN).
texpintdiffpercent	... in percent of intermediate exports.
DViX_Fsr	DVA embodied in gross exports based on forward linkage.

Details

Adapted from code by Fei Wang.

Examples

# Load example data
data(leather)

# Create intermediate object (class 'decompr')
decompr_object <- load_tables_vectors(leather)

# Perform the WWZ decomposition
wwz(decompr_object)

References

Wang, Zhi, Shang-Jin Wei, and Kunfu Zhu (2013). Quantifying international production sharing at the bilateral and sector levels (No. w19677). National Bureau of Economic Research.

See Also

kww, wwz2kww, decompr-package

Author(s)

Bastiaan Quast