GLOB-IO is a multi-regional input-output model for analysing international interdependencies in production and global value chains.
Analysing interdependencies in global value chains with GLOB-IO
Industrial development in recent decades has been characterised by rapidly increasing internationalisation. The production processes are becoming more and more decentralised and increasingly extended beyond national borders. Today, the competition mainly takes place at the level of individual production steps rather than at industry and sectoral level.
Due to these strong interdependencies in the global trade and production network, there is an increasing degree of interdependence between countries. Nowadays, hardly any product can be produced without foreign inputs.
The method of GLOB-IO
Using GLOB-IO, these interdependencies in global value chains can be analysed. Based on global input-output databases, it is possible to track the production processes of goods and services across national borders, starting with the raw materials through intermediary production steps up to the final consumption.
This enables to determine domestic and foreign value added shares in the production of goods and services and to analyse the effects of demand changes on value added and employment in the individual countries.