The research was carried out by Cambridge Econometrics on behalf of the Department for International Trade (DIT).
The research is the first attempt in the UK to explore TiVA in a systematic way.
TiVA is a statistical approach that enables us to examine the degree of countries/sectors’ integration into GVCs. It offers numerous insights that are unavailable in conventional trade data.
The report explains TiVA as a concept and examines:
- the degree to which UK sectors are dependent on imported inputs for their exports and final demand (backward linkages)
- the degree to which UK value added is embodied in foreign exports and final demand (forward linkages)
- UK’s role in GVCs relative to other major economies, at the sector level, and over time
- UK employment supported by exporting activity
- how UK’s bilateral trade balances change in TiVA terms
- UK’s revealed comparative advantage (RCA) sectors in TiVA terms
The analysis is based on the December 2018 OECD TiVA release. This covers indicators for 64 economies and 36 sectors over (mostly) 2005 to 2015.