Accounting for Global Supply Chains: An Integrated Framework That Incorporates Foreign Invested Firms
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Time & Date
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14:00 pm
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15:30 pm,
November
24,
2025
(Monday)
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Venue
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Room D604, Teaching Complex D Building
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| TOPIC | Accounting for Global Supply Chains: An Integrated Framework That Incorporates Foreign Invested Firms |
| TIME&DATE | 14:00 pm - 15:30 pm, November 24, 2025 (Monday) |
| Venue | Room D604, Teaching Complex D Building |
| Speaker |
Zhi Wang George Mason University |
| Abstract | This paper proposes a new unified accounting framework to measure Global Supply Chain (GSC) activities. It integrates decomposition frameworks on gross output, trade, and value added, and formally incorporates the role of Foreign Invested Enterprises (FIEs). Compared to the existing Global Value Chain (GVC) metrics that do not distinguish FIEs from domestic firms, the estimate of GSC activities in our approach is three times as large. The key contributions of our approach are: (1) distinguishing GSC activities based on their positions along production chains (upstream, downstream, or both) and mode of engagement (trade, FDI, or both); (2) extending Vertical Specialization (VS) measures to domestic supply chains, bridging trade-only and production-based analyses; and (3) reconciling net and gross decompositions to provide a comprehensive view of GSC participation and exposures. |
| Biography |
Dr. Zhi Wang is a retired professor and senior policy fellow at Schar School of Policy and Government of George Mason University. He is also a visiting professor in Institute of Global Development, Tsinghua University and consultant professor and founding director of Research Center of Global Value Chains at University of International Business and Economics in Beijing. He obtained his Ph.D. in applied economics at University of Minnesota with a minor in computer and information sciences in 1994. He worked as a Lead international economist at U.S. International Trade Commission for more than 10 years before his current appointment. He also worked as a consultant for the World Bank in the World Development Report, 1995, as an economist at Purdue University, Economic Research service (ERS) of U.S. Department of Agriculture, Bureau of Economic Analysis (BEA) of U.S. Department of Commerce, and as a senior research scientist at School of Computational Sciences of Gorge Mason University before he joint USITC in 2005. He was a research fellow at Chinese Academy of Agricultural Sciences before he came to the United States and served on the board of directors of the Chinese Economists Society (CES) during 1992-93. His major fields of expertise include computable general equilibrium modeling, value chain in global production network, measuring trade in value-added, data reconciliation methods, economic integration among Greater China area, Chinese economies, and international trade. Because of his contribution to the GTAP database and to its use in contemporary policy applications, and his methodological contributions in reconciling re-export trade data, he was selected as Global Trade Analysis Project (GTAP) Research Fellow multi-times. He also served as the US co-chair of the APEC Trade in Value-added (TiVA) technical group in 2015, lead the efforts to build APEC TiVA database. He also selected by Fulbright senior scholar program offering general equilibrium trade policy analysis classes at Chengchi University in Taipei and Tsinghua University in Beijing during 2005 and 2007 respectively. He has been published in world leading economic journals, including the American Economic Review, American Journal of Agricultural Economics, Journal of Development Economics, Journal of International Economics, Journal of Economic Dynamics and Control, Journal of Regional Sciences, Journal of Comparative Economics, and Journal of Policy Modeling. He is the co-editor of the 2017 and 2019 Global Value Chain development report published by the World Bank and WTO. He is an author or contributor of several books including Global Economic Effects of the Asian Currency Devaluations (PIIE, 1998), The Implications of China-Taiwan Economic Liberalization (PIIE, 2010), and Trade in Value Added: Developing New Measures of Cross-Border Trade (CEPR and the World Bank, 2013). |
