Vertical Linkages and the Collapse of Global Trade
AbstractA common view is that cross-border vertical linkages played a key role in the 2008-2009 collapse of global trade. This paper presents two accounting results from a global input-output framework that shed light on this channel. We feed in observed changes in final demand and find that trade in final goods fell by twice as much as trade in intermediate goods. Nevertheless, intermediate goods account for more than two-fifths of the trade collapse. We also find that vertical specialization trade fell 13 percent, while value-added trade fell by 10 percent, because declines in demand were largest in highly vertically-specialized sectors.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by American Economic Association in its journal American Economic Review.
Volume (Year): 101 (2011)
Issue (Month): 3 (May)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kei-Mu Yi, 2003.
"Can Vertical Specialization Explain the Growth of World Trade?,"
Journal of Political Economy,
University of Chicago Press, vol. 111(1), pages 52-102, February.
- Kei-Mu Yi, 2000. "Can vertical specialization explain the growth of world trade?," Staff Reports 96, Federal Reserve Bank of New York.
- Toshihiro Okubo & Fukunari Kimura & Nozomu Teshima, 2014.
"Asian Fragmentation in the Global Financial Crisis,"
CAMA Working Papers
2014-30, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
- Okubo, Toshihiro & Kimura, Fukunari & Teshima, Nozomu, 2014. "Asian fragmentation in the Global Financial Crisis," International Review of Economics & Finance, Elsevier, vol. 31(C), pages 114-127.
- Toshihiro OKUBO & Fukunari KIMURA & Nozomu TESHIMA, 2013. "Asian Fragmentation in the Global Financial Crisis," Working Papers DP-2013-38, Economic Research Institute for ASEAN and East Asia (ERIA).
- Robert Stehrer, 2013. "Accounting Relations in Bilateral Value Added Trade," wiiw Working Papers 101, The Vienna Institute for International Economic Studies, wiiw.
- Tamim Bayoumi & Francis Vitek, 2013. "Macroeconomic Model Spillovers and Their Discontents," IMF Working Papers 13/4, International Monetary Fund.
- Robert Stehrer & Roman Stöllinger, 2013. "Positioning Austria in the Global Economy: Value Added Trade, International Production Sharing and Global Linkages," FIW Research Reports series V-002, FIW.
- Timmer, Marcel & Stehrer, Robert & Los, Bart & Vries, Gaaitzen J. de, 2012.
"Fragmentation, Incomes and Jobs. An analysis of European competitiveness,"
GGDC Research Memorandum
GD-130, Groningen Growth and Development Centre, University of Groningen.
- Marcel P. Timmer & Bart Los & Robert Stehrer & Gaaitzen J. Vries, 2013. "Fragmentation, incomes and jobs: an analysis of European competitiveness," Economic Policy, CEPR & CES & MSH, vol. 28(76), pages 613-661, October.
- Timmer, Marcel P. & Los, Bart & Stehrer, Robert & de Vries, Gaaitzen, 2013. "Fragmentation, incomes and jobs: an analysis of European competitiveness," Working Paper Series 1615, European Central Bank.
- Rudolfs Bems & Robert C. Johnson & Kei-Mu Yi, 2012.
"The Great Trade Collapse,"
NBER Working Papers
18632, National Bureau of Economic Research, Inc.
- Foster-McGregor, Neil & Stehrer, Robert, 2013. "Value added content of trade: A comprehensive approach," Economics Letters, Elsevier, vol. 120(2), pages 354-357.
- Martin Borowiecki & Bernhard Dachs & Doris Hanzl-Weiss & Steffen Kinkel & Johannes Pöschl & Magdolna Sass & Thomas Christian Schmall & Robert Stehrer & Andrea Szalavetz, 2012. "Global Value Chains and the EU Industry," wiiw Research Reports 383, The Vienna Institute for International Economic Studies, wiiw.
- Alyson C. Ma & Ari Van Assche, 2012. "Is East Asia’s Economic Fate Chained to the West?," CIRANO Working Papers 2012s-11, CIRANO.
- Ran Jing, 2011. "The Collapse Speed of China's Exports in the 2008-2009 Financial Crisis," CESifo Working Paper Series 3584, CESifo Group Munich.
- Nikolaos Antonakakis, 2012.
"The Great Synchronization of International Trade Collapse,"
Department of Economics Working Papers
wuwp142, Vienna University of Economics, Department of Economics.
- Antonakakis, Nikolaos, 2012. "The great synchronization of international trade collapse," Economics Letters, Elsevier, vol. 117(3), pages 608-614.
- Antonakakis, Nikolaos, 2012. "The great synchronization of international trade collapse," MPRA Paper 39859, University Library of Munich, Germany.
- Rahel Aichele & Gabriel Felbermayr & Inga Heiland, 2013. "Der Wertschöpfungsgehalt des Außenhandels: Neue Daten, neue Perspektiven," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 66(05), pages 29-41, 03.
- João Amador & Sónia Cabral, 2014. "Global Value Chains: Surveying Drivers, Measures and Impacts," Working Papers w201403, Banco de Portugal, Economics and Research Department.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jane Voros) or (Michael P. Albert).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.