Input structure, international trade of intermediate goods, and international competitiveness

Abstract

The purpose of this paper is to examine the relationship among input structure, international trade of intermediate goods, and international competitiveness at aggregate and sector levels using input-output (IO) tables and IO analysis. We used the IO tables of 66 countries included in the 2021 Edition of OECD’s Input-Output Database (IO-DB), and we observed that IO tables and IO analysis can be useful in understanding the above-mentioned relationships. We found that IO analysis, in particular input structures and impact of final demand on value-added, provides useful hints and intuition about recent trends in international trade and the way countries utilize the global production network.