This volume includes papers that werefirst presented and discussed at a workshop on 'TheFragmentation of Global Production and Trade in Value-Added: Developing New Measures of Cross Border Trade',held at the World Bank in Washington, DC, on 9 to 10 June,2011. This publication is structured as follows: chapter onegives and overview of measuring trade in value added whenproduction is fragmented across countries. Chapter twodiscusses policy rationale and methodological challengestowards the measurement of trade in value-added terms.Chapter three highlights the importance of measuring tradein value added. Chapter four computes and analyses thevalue-added content of trade. Chapter five proposes anaccounting framework for estimating the domestic and foreigncontent share in a country's exports when processingtrade is prevalent. Chapter six provides estimates offoreign and domestic content in Mexico's manufacturingexports that take into account the import content inproduction under the maquiladora and Programa de ImportacionTemporal para Producir Articulos de Exportacion (PITEX)programmes. Chapter seven gives empirical evidence that thestandard gravity equation performs poorly by some measureswhen it is applied to bilateral flows where parts andcomponents trade is important. It also provides a simpletheoretical foundation for a modified gravity equation thatis suited to explain trade where international supply chainsare important. Chapter eight provides methodologicalguidelines on how to compute import coefficients at thelevel of the firm and shows how trade micro-data, can refinethe aggregate nature of the indicators in input-output (IO)tables, by increasing their granularity. Chapter ninereviews the availability of underlying source data,summarizes the assumptions and describes the harmonizationtechniques used. Chapter ten gives three-stagereconciliation method to construct a time seriesinternational IO database. Chapter eleven gives directmeasurement for collecting product- and firm-levelstatistics on value added and business function outsourcingand offshoring. Chapter twelve focuses on statistics andmeasures that are developed and used for defining andmonitoring trade policy and economic development. Eachchapter gives references at the end.