Trade glossary · measurement

Trade in value-added (TiVA)

Decomposes gross trade flows into the value contributed by each country in a global value chain. An iPhone exported from China contains components from many countries; TiVA reveals that.

Standard trade statistics record gross flows (the full value of an exported iPhone counts as a Chinese export). TiVA databases instead split that value among every country whose firms contributed (Korean displays, US chips, Japanese sensors, Chinese assembly). The OECD-WTO TiVA database is the leading source, available for 76 economies and 45 industries with a 4-year lag.

Examples

A Chinese-assembled iPhone may contain only ~5% Chinese value-added.
TiVA shows that Germany's "exports" embed ~25% imported intermediates from Eastern Europe.

Authoritative source: OECD TiVA ↗

Related terms

Global value chain (GVC)

Cross-border production network where stages of manufacture occur in different countries (e.g. design in the US, components in Korea, assembly in Vietnam, sale in Europe).

Merchandise trade

Trade in physical goods that cross customs borders. Excludes services, intellectual property licensing, and digital goods. CEPII BACI covers merchandise trade only.