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Accounting for Firm Heterogeneity within U.S. Industries: Extended Supply-Use Tables and Trade in Value Added using Enterprise and Establishment Level Data

Author

Listed:
  • James J. Fetzer
  • Tina Highfill
  • Kassu W. Hossiso
  • Thomas F. Howells, III
  • Erich H. Strassner
  • Jeffrey A. Young
Abstract
This paper presents experimental trade-in-value added statistics estimated from extended supply-use tables (SUTs) for the United States for 2005 and 2012 that account for firm heterogeneity. We also present preliminary output from a microdata linking project between the U.S. Bureau of Economic Analysis and the U.S. Census Bureau on the U.S. semiconductor and other electronic components manufacturing industry to show how different firm characteristics account for heterogeneity. Our experimental results show that imported content of exports as a share of exports varies notably by firm-type within most industries, and that the imported content of exports is concentrated in a few industries, the largest being petroleum manufacturing. Despite the dominance that U.S. and foreign multinational enterprises (MNEs) have over trade transactions, both MNEs and non-MNEs make significant contributions to the content of U.S. exports. Estimates based on our microdata linking project suggest that production patterns by ownership, firm size class, and export intensity each exhibit firm heterogeneity to some extent. The ownership criterion best identifies heterogeneity in the value added share of production among the three criteria, while firm size class identifies heterogeneity in the export share of production better than the ownership criterion.

Suggested Citation

  • James J. Fetzer & Tina Highfill & Kassu W. Hossiso & Thomas F. Howells, III & Erich H. Strassner & Jeffrey A. Young, 2018. "Accounting for Firm Heterogeneity within U.S. Industries: Extended Supply-Use Tables and Trade in Value Added using Enterprise and Establishment Level Data," NBER Working Papers 25249, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:25249
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    References listed on IDEAS

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    Cited by:

    1. María C. Latorre & Zoryana Olekseyuk & Hidemichi Yonezawa, 2020. "Foreign multinationals in service sectors: A general equilibrium analysis of Brexit," The World Economy, Wiley Blackwell, vol. 43(11), pages 2830-2859, November.
    2. Alonso de Gortari, 2019. "Disentangling Global Value Chains," NBER Working Papers 25868, National Bureau of Economic Research, Inc.
    3. Bernhard Michel & Caroline Hambÿe & Bart Hertveldt, 2020. "The Role of Exporters and Domestic Producers in GVCs: Evidence for Belgium Based on Extended National Supply and Use Tables Integrated into a Global Multiregional Input-Output Table," NBER Chapters, in: Challenges of Globalization in the Measurement of National Accounts, pages 347-387, National Bureau of Economic Research, Inc.
    4. Bernhard Michel & Caroline Hambÿe & Bart Hertveldt, 2018. "The Role of Exporters and Domestic Producers in GVCs: Evidence for Belgium based on Extended National Supply-and-Use Tables Integrated into a Global Multiregional Input-Output Table," NBER Working Papers 25155, National Bureau of Economic Research, Inc.
    5. Xu, Yan & Dietzenbacher, Erik & Los, Bart, 2020. "International trade and air pollution damages in the United States," Ecological Economics, Elsevier, vol. 171(C).
    6. Caroline Hambye & Bart Hertveldt & Bernhard Klaus Michel, 2018. "Working Paper 11-18 - Value chain integration of export-oriented and domestic market manufacturing firms - An analysis based on a heterogeneous input-output table for Belgium," Working Papers 1811, Federal Planning Bureau, Belgium.
    7. Mario Marcel & Diego Vivanco, 2021. "Measuring Small and Medium-Size Enterprises Contribution to Trade in Value Added: The case of Chile 2013-2016," Working Papers Central Bank of Chile 914, Central Bank of Chile.
    8. Mateo Ortiz & María‐Ángeles Cadarso & Luis‐Antonio López, 2020. "The carbon footprint of foreign multinationals within the European Union," Journal of Industrial Ecology, Yale University, vol. 24(6), pages 1287-1299, December.

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    More about this item

    JEL classification:

    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F6 - International Economics - - Economic Impacts of Globalization

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