Koen De Backer, Sébastien Miroudot, Davide Rigo, 19 April 2018

Multinational enterprises that produce goods rely on services to organise their value chain, so barriers to investment in services are likely to affect their production. The column uses a new and comprehensive OECD database to measure the share of services in the exports of multinational enterprises, and also in the output of their foreign affiliates. The results suggest that policymakers may need to focus more on the services that support manufacturing industries.

Alejandro Cuñat, Robert Zymek, 15 October 2017

A large portion of international income differences remains poorly understood. It is traditionally attributed to cross-country differences in total factor productivity, which cannot be measured directly. This column argues that the importance of total factor productivity has been overstated because differences in countries’ patterns of international linkages have been overlooked. Using input-output data for 40 countries, it shows how the assumption that economies are closed has led traditional development accounting to overestimate total factor productivity.

Robert Johnson, Guillermo Noguera, 22 July 2012

The internationalisation of supply chains has been revolutionising international trade and trade policy for years. This column argues that expansion of international supply chains helps explain the so-called ‘distance paradox’, i.e. the fact that geography is still a powerful shaper of trade patterns despite declines in transport costs. It also argues that trade policy has played a prominent role in driving the expansion of global supply chains.

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