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Overall, change in value added coefficient had a positive correlation with change in DVA of each kind of export.
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The underlying assumption of the price model is that changes in value added lead to changes in relative prices of goods and services but the quantities of goods demanded remain constant.
Because the factors that drove the changes in value added were mainly structural variables that were little affected by price factors, we used current prices in the DPN tables directly without considering the effects of inflation.
Table 4 Inter-temporal decomposition of changes in trade in value added Total changes (mil.
Changes in trade in value added defined in Eq. 3 can be decomposed into those due to changes in final demand F = {F ij } and changes in the structural parameters ( widehat{V} ) and A = {A ij } in the following manner, which is similar to the standard growth factor decomposition proposed by Chenery and Sylquin [10].
Table 4 presents the results of the inter-temporal decomposition of changes in trade in value added between the four regions based on Eq. 6.
where X 1 = B 1 F 1. The first term of the rightmost hand of Eq. 6 represents changes in trade in value added due to increases in final demand (ΔF) of the endogenous regions (the final demand factor).
This includes purchases of land, which reflect only changes in ownership, not increases in value added, which GDP tries to measure.
Trade in value added.
They are the change in the value added coefficients ((Delta A_{v})), change in the import coefficient ((Delta A_{d})), change in the intermediate inputs ((Delta A)), change in the volume of exports or exports scale ((Delta e)), change in exports structure ((Delta S)), and change in the ratio of three export types (processing trade, normal trade of goods, and normal trade of services) ((Delta r)).
For each kind of trade, change in the value added coefficient has a positive correlation with change in exported DVA.
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