Under The Background Of Global Value Chain Of The International Trade Statistics Research Method Reform

The increasing fragmentation of global value chains has led to an increase oftrade flows in intermediate goods; this trade in parts, components and accessoriesencourages the specialization of different economies. Processing trade in developingcountries grows faster. However, the conventional trade statistical system originatedfrom1940s takes” residence” principle as a foundation. Only when a transactioncrosses the customs boundary, the system measures the transaction in the country’sexport or import, regarding cross-border trade as international trade actually. Thoughthe content is mended and improved, the principal of traditional system remain,leading to an incorrect trade statistics. The reform of international trade statisticalsystem is imperative under the situation.Firstly, this paper analyzed the reasons and necessity of trade statistical systemreform from the perspective of formation of global value chains and newcharacteristics of trade. Secondly, this paper gives an analysis of how value-addedtrade statistics works, compares it to traditional system by KPWW two-country model,leading to a conclusion that value-added statistics gives a better picture ofinternational trade because traditional system counts foreign value added share intoexport and domestic value-added into import, but value-added trade measure doesn’t,then analyzes pros and cons of different measure methods of value-added. Finally,elaborated the study of the effect of reform of Trade Statistical Method and gives theconclusion that the reform could help to better understand international trade.