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icio

icio decomposes gross exports from inter-country input-output (ICIO) tables into value-added and double-counting components, implementing four decompositions from the global value chain (GVC) literature:

bm() is the recommended state-of-the-art decomposition and reproduces the Stata icio command (Belotti, Borin & Mancini 2021). It also provides a corrected version of the KWW decomposition (perspective = "world", approach = "sink"), which fixes a known systematic bias in kww().

Installation

# install.packages("remotes")
remotes::install_github("SebKrantz/icio")

Usage

library(icio)

# The built-in 3x3 leather-sector ICIO table
data(leather)

# Build an 'icio' object: the expensive step (inverting I - A) is done once here
m <- load_icio(leather)

# ... or from the raw matrices, or from the Stata 'icio' CSV format
m <- load_icio(leather$inter, leather$final, leather$countries, leather$industries)
m <- load_icio_csv("EM_2015.csv", "EM_countrylist.csv")

# Borin-Mancini (2019): up to 13 terms, exporter perspective
bm(m)
bm(m, aggregation = "sector")
bm(m, aggregation = "bilateral", approach = "sink")

# Corrected KWW (world / sink perspective)
bm(m, perspective = "world", approach = "sink")

# Importer-perspective decomposition of gross imports
bm(m, flow = "imports")

# The other decompositions
leontief(m)
kww(m)
wwz(m)

# Unified interface, also for several tables at once (e.g. one per year)
decomp(m, aggregation = "bilateral")
decomp(list(`2015` = m, `2016` = m), method = "kww", idcol = "Year")

All decompositions return a data.table. See vignette("icio") for a detailed walk-through.

Related

• icio (Stata) — the reference implementation of the Borin-Mancini decompositions, by Belotti, Borin & Mancini (2021), and the origin of this package’s name. bm() reproduces its output; its perspective() and approach() options map onto the arguments of the same name here.
• GlobalValueChains.jl (Julia) — the counterpart to this package; bm() mirrors its decompose().
• icio is derived from the CRAN package decompr, which is no longer maintained.

References

• Borin, A., & Mancini, M. (2019). Measuring What Matters in Global Value Chains and Value-Added Trade. World Bank Policy Research Working Paper 8804.
• Belotti, F., Borin, A., & Mancini, M. (2021). icio: Economic analysis with inter-country input-output tables. The Stata Journal, 21(3), 708–755.
• Koopman, R., Wang, Z., & Wei, S.-J. (2014). Tracing value-added and double counting in gross exports. American Economic Review, 104(2), 459–494.
• Wang, Z., Wei, S.-J., & Zhu, K. (2013). Quantifying International Production Sharing at the Bilateral and Sector Levels. NBER Working Paper 19677.
• Hummels, D., Ishii, J., & Yi, K.-M. (2001). The nature and growth of vertical specialization in world trade. Journal of International Economics, 54(1), 75–96.

These binaries (installable software) and packages are in development.
They may not be fully stable and should be used with caution. We make no claims about them.