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Published: 2020
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ISBN-13: 9789276191773
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The European Commission's Joint Research Centre (JRC) and the Basque Centre for Climate Change (BC3) have jointly developed Trade-SCAN v2 (Trade Supply Chain Analysis), a user-friendly tool for global value chains analysis, in support of the European Commission's Directorate General for Trade's (DG TRADE) policymaking. As in many policy and academic areas, international trade is at the core of Trade-SCAN v2. Exports (encompassing both intermediate and final product exports) and final demand constitute the object of analysis of this tool. Both exports and the demand for final products generate a series of effects across all industries and countries participating upstream and downstream of the supply chains. Recent research into global value chains, together with the availability of global multiregional input-output databases, has made it possible to trace the origin of the value added incorporated in traded goods depending on their use and destination. Trade-SCAN v2 implements a novel mathematical framework for the decomposition of bilateral gross exports developed by Arto et al. (2019). The approach is based on the foundations of input-output economics and matrix algebra. This framework allows the decomposition of a country's bilateral gross exports, measured at the border, into a single expression. Trade-SCAN v2 provides a full decomposition of bilateral gross trade (from a country perspective) into foreign, domestic and double-counting components, facilitating the calculation of bilateral gross exports in value added terms as well as the employment and CO2 emissions embodied in the bilateral gross exports of countries. Furthermore, it includes the calculation of the foreign/domestic factor contents of the final demand of countries and regions: value added components, employment and CO2 emissions, by sector, skill, gender, age group, etc. For value added, for instance, Trade-SCAN v2 allows the identification of the country and industry where the value added is generated, the exporting country and industry, the importing country and industry, the country and industry producing the final goods and the country whose final demand is ultimately driving the exports. Trade-SCAN v2 allows the possibility to choose between three different global multiregional input-output tables: the OECD 2018 Inter-Country Input-Output Tables (oe.cd/icio), the European Commission-funded World Input-Output Database (www.wiod.org), and EXIOBASE3.4 (www.exiobase.eu). The Eurostat-FIGARO (https://ec.europa.eu/eurostat/web/experimental-statistics/figaro) database will be added in 2021. The design of this tool facilitates global value chain analysis. Therefore, the intended audience of Trade-SCAN v2 tool is mainly policy-makers, but it can also be useful for academic, educational or informational purposes. This document shows how to use the three modules of Trade-SCAN, the ad-hoc queries, the pocketbook and the dashboard. It also demonstrates the potential of the ad-hoc queries module with a series of examples extracted from five reports published by the JRC and DG TRADE (Arto et al., 2018a, 2018b, 2020a, 2020b, 2020c).
