Abstract

http://ssrn.com/abstract=1023939
 
 

References (26)



 
 

Citations (261)



 


 



Vertical Specialization and the Changing Nature of World Trade


David L. Hummels


Purdue University - Department of Economics; National Bureau of Economic Research (NBER)

Dana Rapoport


affiliation not provided to SSRN

Kei-Mu Yi


Federal Reserve Bank of Philadelphia

June 1998

Economic Policy Review, Vol. 4, No. 2, June 1998

Abstract:     
A major feature of globalization has been the enormous increase in international flows of goods and services: countries are now trading much more with each other. In this article, the authors demonstrate the greater role vertical specialization is playing in these increased flows. Vertical specialization occurs when a country uses imported intermediate parts to create a good it later exports - that is, the country links sequentially with other countries to produce a final good. Deriving evidence from four case studies as well as OECD input-output tables, the authors reveal that vertical specialization has accounted for a large and increasing share of international trade over the last several decades. They also note that because the trends encouraging vertical specialization - lower trade barriers and improvements in transportation and communications technologies - are likely to continue, this type of international trade should become even more prevalent in the next century.

Number of Pages in PDF File: 21

Keywords: vertical specialization

JEL Classification: F1, F14, F23

Accepted Paper Series


Download This Paper

Date posted: October 23, 2007  

Suggested Citation

Hummels, David L. and Rapoport, Dana and Yi, Kei-Mu, Vertical Specialization and the Changing Nature of World Trade (June 1998). Economic Policy Review, Vol. 4, No. 2, June 1998. Available at SSRN: http://ssrn.com/abstract=1023939

Contact Information

David L. Hummels (Contact Author)
Purdue University - Department of Economics ( email )
West Lafayette, IN 47907-1310
United States
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Dana Rapoport
affiliation not provided to SSRN
No Address Available
Kei-Mu Yi
Federal Reserve Bank of Philadelphia ( email )
Ten Independence Mall
Philadelphia, PA 19106-1574
United States
Feedback to SSRN


Paper statistics
Abstract Views: 2,657
Downloads: 537
Download Rank: 27,564
References:  26
Citations:  261

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo5 in 0.297 seconds