bm: Borin-Mancini Decomposition of Gross Exports

In decompr: Global Value Chain Decomposition

Borin-Mancini Decomposition of Gross Exports

Description

Decomposes gross exports into value-added and Global Value Chain (GVC) components following the Borin and Mancini (2019) framework, as implemented in the Stata icio command (Belotti, Borin and Mancini 2021). It is the R counterpart of the decompose() function in the Julia package ICIO.jl, and operates on a decompr object created by load_tables_vectors.

Usage

bm(
  x,
  aggregation = c("country", "sector", "bilateral"),
  perspective = c("exporter", "world"),
  approach = c("source", "sink")
)

Arguments

x	an object of class decompr obtained from load_tables_vectors.
aggregation	character. The level of the decomposition: "country" (one row per exporting country), "sector" (one row per exporting country-industry), or "bilateral" (one row per exporting country-industry and importing country, excluding within-country flows). Default "country".
perspective	character. The accounting perspective defining the perimeter for double counting: "exporter" (exporting-country perspective, additive across sectors and destinations, 13 terms) or "world" (world perspective, 9 terms, only available for aggregation = "country"). Default "exporter".
approach	character. How double-counted items are allocated across shipments: "source" (value added recorded the first time it leaves the country of origin) or "sink" (the last time). "exporter" requires "source"; "world" requires "sink". Default "source".

Details

For the default exporter / source perspective the decomposition yields 13 terms; the world / sink perspective (country level only, the "corrected KWW" decomposition) yields 9. All terms are in the same units as the input-output table (e.g. millions of USD). The following accounting identities hold: GEXP = DC + FC, DC = DVA + DDC, FC = FVA + FDC, DVA = VAX + REF, and (exporter/source only) GVC = GVCB + GVCF = GEXP - DAVAX and GVCB = FC + DDC.

GEXP	Gross exports.
DC / FC	Domestic / foreign content.
DVA / FVA	Domestic / foreign value added.
DDC / FDC	Domestic / foreign double counting.
VAX	Domestic value added absorbed abroad (Johnson and Noguera 2012).
REF	Reflection: domestic value added returning home.
DAVAX	Domestic value added directly absorbed by the importer.
GVC	GVC-related trade (value added crossing more than one border).
GVCB / GVCF	Backward / forward GVC participation.

The exporter / source decomposition is additive: the "sector" result is the sum of the "bilateral" result over importers, and the "country" result is the sum of the "sector" result over industries.

Value

A data.frame with one row per unit and one column per value-added term, preceded by factor identifier columns: Exporting_Country (country); Exporting_Country, Exporting_Industry (sector); or Exporting_Country, Exporting_Industry, Importing_Country (bilateral). The attribute "decomposition" is set to "bm".

Author(s)

Sebastian Krantz

References

Borin, A. and 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. and Mancini, M. (2021). icio: Economic analysis with intercountry input-output tables. The Stata Journal, 21(3), 708-755.

See Also

kww, wwz, leontief, decompr-package

Examples

# Load example data and create a 'decompr' object
data(leather)
dec <- load_tables_vectors(leather)

# Country-level decomposition (exporter perspective, source approach; 13 terms)
bm(dec)

# Country-level "corrected KWW" (world perspective, sink approach; 9 terms)
bm(dec, perspective = "world", approach = "sink")

# Sector- and bilateral-sector-level decompositions
bm(dec, aggregation = "sector")
bm(dec, aggregation = "bilateral")

decompr documentation built on June 9, 2026, 5:09 p.m.