Abstract
This article investigates the dynamics and the international distribution of 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 countries with a detailed product breakdown. We illustrate this measure by showing the evolution of VS activities at the world level over the 1967-2005 period. The results are consistent with partial evidence existing in the literature, pointing to a substantial increase of VS in high-technology products and in East Asia.
Original language | English |
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Pages (from-to) | 267-280 |
Number of pages | 14 |
Journal | North American Journal of Economics and Finance |
Volume | 20 |
Issue number | 3 |
DOIs | |
Publication status | Published - 1 Dec 2009 |
Keywords
- International fragmentation of production
- Vertical specialization