Global Value Chains: Evidence from U.S. Manufacturing Firms

Abstract

Using confidential business data from the U.S. Census Bureau, we measure the extent of international inputs embodied in U.S. exports at the level of the establishment and firm, providing a new way to characterize global value chains (GVCs) in the United States. A direct link between imported inputs and exports at the level of firms and establishments provides a natural benchmark against which alternative measures of GVCs—such as those built from combining national-level input-output tables—can be assessed.  Such comparisons yield insights on the role of aggregation bias, proportionality assumptions, and the intermediate vs final goods classification of imports.  This new data resource provides a novel window into the complex ways U.S. firms are simultaneously linked to multiple markets through foreign sourcing and foreign sales.