Data for: From exports to value added to income: Accounting for bilateral income transfers

The existence of multinational firms and the rise of global value chains
raise the question how international trade contributes to a country's
income. Ownership relations between, for example, headquarters and
subsidiaries result in international income transfers. These transfers are
ignored in standard trade data. Taking them into account in a global
input-output analysis allows us to assess how much income is generated in
one country due to the consumption of final products in another country.
This provides a new perspective compared to the concept of value-added
exports introduced by Johnson and Noguera (2012). For the US, we find that
the income generated by foreign consumption is 51% higher than the value
added in the US that is generated by foreign consumption. Similar findings
hold for other countries as well, but to a lesser extent. The implication
is that the current account deficit of the US almost disappears from the
income perspective.