International Trade Networks and the Integration of Colombia into Global Trade

19 Pages Posted: 13 Feb 2019

See all articles by Andrés Murcia

Andrés Murcia

Banco de la República

Hernando Vargas

Banco de la República

Carlos León

Banco de la República (Central Bank of Colombia); Tilburg University - Center for Economic Research (CentER)

Date Written: December 21, 2018

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

Suggested Citation

Murcia, Andrés and Vargas, Hernando and León, Carlos, International Trade Networks and the Integration of Colombia into Global Trade (December 21, 2018). BIS Paper No. 100g, Available at SSRN: https://ssrn.com/abstract=3331979

Andrés Murcia (Contact Author)

Banco de la República ( email )

Carrera 7 #14-78
3551 de Bogotá
Colombia

Hernando Vargas

Banco de la República ( email )

Carrera 7 #14-78
Bogota
Colombia

Carlos León

Banco de la República (Central Bank of Colombia) ( email )

Bogotá
Colombia

Tilburg University - Center for Economic Research (CentER) ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

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