Accounting for intermediates: Production sharing and trade in value added

► We estimate the value added content of trade using a global input-output framework. ► The aggregate value added to export ratio for the median country is roughly 70%. ► Bilateral ratios vary due to production sharing patterns, not export composition. ► Bilateral value added trade imbalances differ from gross trade imbalances. ► The U.S.-China value added imbalance is 30-40% smaller than the gross imbalance.