Unraveling Interconnectedness: Global Value Chains and Input-Output Econometrics Training Course

Introduction

The global economy is increasingly characterized by the fragmentation of production across national borders, forming intricate networks known as Global Value Chains (GVCs). Understanding how different stages of production are linked globally, how value is added at each step, and how shocks propagate through these complex systems is paramount for policymakers, businesses, and researchers. Traditional trade statistics, focusing on gross trade flows, often obscure the true sources of value added and the degree of interdependence, making advanced analytical tools essential.

This intensive training course is meticulously designed to equip participants with a comprehensive and practical understanding of Global Value Chains and the powerful framework of Input-Output (I-O) Econometrics. From mastering the construction and use of Multi-Regional Input-Output (MRIO) tables to applying advanced decomposition techniques for measuring GVC participation, value-added trade, and spillover effects, you will gain the expertise to rigorously analyze global production networks. This empowers you to conduct cutting-edge research, inform trade and industrial policies, and assess economic resilience in a deeply interconnected world.

Target Audience

  • Economists and researchers in trade ministries, central banks, and statistical agencies.
  • Policy analysts and advisors working on industrial policy, trade agreements, and economic development.
  • Academics and graduate students (Master's and PhD) in international economics, econometrics, or development studies.
  • Data scientists and quantitative analysts interested in complex economic networks.
  • Professionals in international organizations (e.g., WTO, UNCTAD, World Bank, OECD) dealing with trade and production data.
  • Business strategists and supply chain managers in multinational corporations.
  • Statisticians involved in national accounts and input-output table compilation.
  • Anyone seeking a rigorous, hands-on understanding of quantitative GVC analysis.

Duration: 10 days

Course Objectives

Upon completion of this training course, participants will be able to:

  • Understand the conceptual framework of Global Value Chains (GVCs) and their significance in the global economy.
  • Grasp the theoretical foundations of input-output analysis and its application to international trade.
  • Analyze the structure and construction of single-country and Multi-Regional Input-Output (MRIO) tables.
  • Comprehend various methodologies for measuring GVC participation, backward and forward linkages, and value-added trade.
  • Evaluate the impact of GVCs on economic indicators such as GDP, employment, and productivity.
  • Develop practical skills in using MRIO data and associated econometric techniques for GVC analysis.
  • Navigate the challenges of data availability, comparability, and methodological choices in GVC research.
  • Formulate robust, evidence-based analyses of global production networks and their policy implications.

Course Content

  1. Introduction to Global Value Chains (GVCs)
  • Defining GVCs: fragmentation of production, international supply chains
  • Key features of GVCs: vertical specialization, lead firms, governance structures
  • Evolution and drivers of GVC growth: technology, trade liberalization, logistics
  • Stylized facts and global trends in GVC participation
  • Importance of GVCs for economic development, competitiveness, and resilience
  1. Fundamentals of Input-Output Analysis
  • The basic input-output (I-O) framework: industries, sectors, final demand
  • Leontief inverse matrix: direct and indirect requirements
  • Value-added decomposition in I-O tables
  • Uses of I-O tables for economic analysis: multipliers, structural decomposition
  • Limitations of single-country I-O tables for global analysis
  1. Multi-Regional Input-Output (MRIO) Tables
  • The necessity of MRIO tables for GVC analysis
  • Structure and construction of MRIO tables: inter-country supply-use tables
  • Major MRIO databases: WIOD, OECD-TiVA, Eora, GTAP
  • Data harmonization and compilation challenges in MRIO databases
  • Understanding data dimensions: countries, sectors, time periods
  1. Measuring GVC Participation: Backward and Forward Linkages
  • Conceptualizing GVC participation through I-O framework
  • Backward Linkages Module: foreign value-added content in exports (import content of exports)
  • Forward Linkages Module: domestic value-added content in other countries' exports (exports of intermediates)
  • Computing GVC participation indicators from MRIO tables
  • Interpretation of backward and forward participation indices
  1. Trade in Value-Added (TiVA) and Gross vs. Value-Added Trade
  • The distinction between gross trade and value-added trade
  • Decomposing gross exports into domestic and foreign value-added components
  • Measuring bilateral value-added trade flows
  • Re-exporting and double counting in gross trade statistics
  • The TiVA framework and its policy implications
  1. GVCs, Economic Growth, and Productivity
  • Channels through which GVC participation affects economic growth (e.g., specialization, technology transfer, learning-by-doing)
  • Analyzing productivity spillovers from GVC integration
  • GVCs and structural transformation: opportunities for upgrading in GVCs
  • Empirical evidence on GVCs and economic performance
  • Modeling the relationship between GVCs and macroeconomic aggregates
  1. GVCs and Employment
  • Estimating employment embodied in exports (gross vs. value-added terms)
  • The impact of GVC participation on domestic employment: direct and indirect effects
  • GVCs and labor market outcomes: wages, skill demand, informality
  • Analyzing the distribution of value-added and labor income along GVCs
  • Policy implications for employment and skills development
  1. Advanced Decomposition Techniques
  • Further decompositions of gross exports: identifying various types of value-added contributions
  • Decomposing value-added in gross exports by origin and destination
  • Using advanced structural decomposition analysis (SDA) to understand drivers of GVC changes
  • Analyzing GVC positions (upstreamness/downstreamness) and their determinants
  • Quantifying carbon emissions and other environmental impacts embodied in GVCs
  1. Policy Analysis with GVC and I-O Frameworks
  • Assessing the impact of trade policies (tariffs, NTBs) in a GVC world
  • GVCs and regional trade agreements: trade creation and diversion in value-added terms
  • Industrial policy in the context of GVCs: promoting upgrading and resilience
  • Analyzing the propagation of shocks through GVCs (e.g., supply chain disruptions)
  • Simulating counterfactual scenarios using MRIO models
  1. Implementing GVC and I-O Econometrics
  • Accessing and manipulating MRIO datasets (e.g., using Python or R)
  • Practical exercises: calculating GVC indicators, value-added trade, and employment multipliers
  • Using specialized software packages or custom scripts for I-O and GVC analysis
  • Case studies: applying GVC analysis to specific sectors (e.g., electronics, automotive, textiles) or regions
  • Presenting and communicating complex GVC insights for policy recommendations.

CERTIFICATION

  • Upon successful completion of this training, participants will be issued with Macskills Training and Development Institute Certificate

TRAINING VENUE

  • Training will be held at Macskills Training Centre. We also tailor make the training upon request at different locations across the world.

AIRPORT PICK UP AND ACCOMMODATION

  • Airport pick up and accommodation is arranged upon request

TERMS OF PAYMENT

Payment should be made to Macskills Development Institute bank account before the start of the training and receipts sent to info@macskillsdevelopment.com

For More Details call: +254-114-087-180

 

Unraveling Interconnectedness: Global Value Chains And Input-output Econometrics Training Course in United States of America
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