International Trade Networks and the Integration of Colombia into Global Trade

Abstract

Global trading activity for different types of goods is mapped using network analysis, comparing the mid-1990s with recent years. Variations in trade patterns through time are described and the rise of new players in different sectors is documented. Subsequently, some features of the integration of Colombia into global trade are presented along with some evidence on the impact of this process on the responsiveness of the manufacturing sector to exchange rate shocks. The main conclusions are the following: (i) globalisation has generated important changes in international trade, increasing the links between countries and making the world trade network (WTN) denser, more reciprocal and more clustered; (ii) the rise of China in global trade is perhaps one of the most important developments in recent years; (iii) nevertheless, this process has been uneven across sectors; (iv) the integration of the Colombian economy into global trade has been significant but imperfect; and (iv) the exposure of Colombian manufacturing firms to international markets on both their demand and cost sides may be an important reason why manufacturing output and trade have not responded much to fluctuations in exchange rates.

Full Publication: Globalisation and Deglobalisation

Keywords: international trade, network analysis, globalisation, manufacturing sector, real exchange rate, Colombia

JEL Classification: F15, F60, F31