Country and industry-level determinants of vertical specialization-based trade

Clark, Don P.

doi:10.1080/10168730600699515

Cited by 34 publications

(25 citation statements)

References 14 publications

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“…With Random effect estimator we can conclude that the economic dimension (LogDIM) has a positive influence on the total VIIT is confirmed. The geographical distance represents a negative correlation confirming the results of Badinger and Breuss (2008), Clark (2006), Faustino and Leitão (2008). T-Statistics (heteroskedasticity corrected) are in brackets.…”

Section: Empirical Studysupporting

confidence: 73%

Immigration and Trade

Leitão

Dima

2012

Economic Research-Ekonomska Istraživanja

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Section: Empirical Studysupporting

confidence: 73%

Immigration and Trade

Leitão

Dima

2012

Economic Research-Ekonomska Istraživanja

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“…He shows that, outside the machinery and transport equipment group, production sharing seems to be also a key factor in the manufacture of textiles and clothing, leather goods, footwear and other labour intensive manufactures. In addition, Clark (2006) examines data on the use of offshore assembly provisions in the US tariff code and concludes that US firms tend to shift the simple assembly operations to unskilled labour abundant countries. Feenstra et al (1998) also find that the US content of imports, made through the US offshore assembly program, of apparel and machinery and of transportation equipment from industrial countries is characterized by relatively intense use of skilled labour.…”

Section: Measuring the International Fragmentation Of Productionmentioning

confidence: 99%

Vertical specialization across the world: A relative measure

Amador¹,

Cabral²

2009

The North American Journal of Economics and Finance

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This paper investigates a specific aspect of international production linkages that, following Hummels et al. (2001), is commonly designated as vertical specialization (VS) -the use of imported inputs to produce goods that are afterwards exported. We propose a relative measure of VS-based trade that combines information from Input-Output matrices and international trade data, producing results for a large sample of individual countries and geographical areas with a detailed product breakdown over the 1967-2005 period. This measure identifies a country's trade flow as associated with VS activities when the share of exports of a good relatively to the world average is above a given threshold and it is accompanied by a relative share of imports of a related intermediate product that is also above the threshold. The quantification of VS-based trade for each country/product pair in each period is made in a relative and conservative manner, since it includes only the value of intermediate imports that surpasses what is implied by the chosen international threshold. The detailed results can be subsequently added up to get any product or geographical breakdown desired. We illustrate this measure by showing the evolution of VS activities at the world level over the last four decades using a product breakdown by technological intensity and a geographical breakdown by main areas. The results point to a substantial increase of VS in high-technology products over the last two decades. There is also empirical evidence on the sharp increase of VS activities in East Asia.

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“…International fragmentation of the production process by US firms is, for instance, studied by Swenson (2005) and Clark (2006). The first study analyzes the cross-country pattern of US outsourcing activities between 1980 and 2000.…”

Section: Related Researchmentioning

confidence: 99%

“…The study finds that US outsourcing activities will increase as these costs fall or when a competitor country's costs rise. Clark (2006) investigates the determinants that influence US firms to engage in vertical specialization. This research shows that the main reason for US firms to engage in fragmentation is to counter a comparative disadvantage in home production.…”

Section: Related Researchmentioning

confidence: 99%

“…It is worth highlighting the work by Athukorola and Yamashita (2006) and Kimura et al (2007) for East Asia; Baldone et al (2001), Egger and Egger (2005) and Kaminski and Ng (2005) for EU; and Görg (2000), Swenson (2005) and Clark (2006) for the US. Studies like Yeats (2001) or Jones et al (2005) analyze the phenomenon on a more global basis, covering countries from all three regions.…”

Section: Introductionmentioning

confidence: 99%

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Fragmentation and parts and components trade in the Western Balkan countries

Shimbov

Alguacil

Suárez

2013

Post-Communist Economies

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As a consequence of the increasing globalization and integration of the world's markets, there has been an intensive process of international fragmentation of the production over the last few decades. This phenomenon whereby previously integrated productive activities are segmented and internationally spread is reflected in the rapid increase in parts and components trade, growing at higher rates than final goods trade. In this process, the Western Balkan countries (WBC) have not been an exception. With their recent integration into the global markets, the WBC have witnessed growth in parts and components trade that has even exceeded the world average. This paper examines the determinants of the trade that stems from the international fragmentation of production in the WBC. Using a panel data set of disaggregated bilateral trade flows, we estimate gravity equations for the period 2000-2009. Our findings support the hypothesis drawn from the theory of fragmentation that trade in parts and components is motivated by labor cost differences and by geographical and proximity reasons. The relevance of additional service link costs, as well as the influence of institutional similarity and infrastructure quality or political-economic agreements is also confirmed by our empirical research.

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Country and industry-level determinants of vertical specialization-based trade

Cited by 34 publications

References 14 publications

Immigration and Trade

Immigration and Trade

Vertical specialization across the world: A relative measure

Fragmentation and parts and components trade in the Western Balkan countries

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