Shifts in International Trade and Value Added from 1995 to 2007: Insights into the Drivers of Growth
AbstractWe decompose global export growth into a structural and a pure growth component in order to highlight the importance of structural change at the regional and industry level for the impressive growth performance of international trade. For this, we combine data on exports, output and sector-specific prices for a sample of roughly 150 countries and 22 manufacturing industries over the period from 1995 to 2007. While structural change played only a minor role for Western Europe, NAFTA and also Southeast Asia over this period, the region of Central, Eastern and Southeastern Europe shows an outstanding amount of restructuring at the industry level. Especially the new EU member countries were rapidly restructuring toward globally important industries despite their initial harmful specialization pattern. Furthermore, this region shows by far the highest elasticity of exports to output and demand changes at the industry level. While we do not observe an excessive reaction of exports to output expansion at the level of individual industries, exports react highly elastically to changes in global demand. However, elasticity differs greatly among individual regions and among industries. This corroborates the view that rapid growth in world trade arises from changes in the regional and sectoral composition of global production and trade, with faster-growing economies moving rapidly into more trade-intensive activities.
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.
Bibliographic InfoArticle provided by Oesterreichische Nationalbank (Austrian Central Bank) in its journal Focus on European Economic Integration.
Volume (Year): (2011)
Issue (Month): 3 ()
Postal: Oesterreichische Nationalbank, Documentation Management and Communications Services, Otto-Wagner Platz 3, A-1090 Vienna, Austria
Find related papers by JEL classification:
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F15 - International Economics - - Trade - - - Economic Integration
- O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
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.:
- Baier, Scott L. & Bergstrand, Jeffrey H., 2001. "The growth of world trade: tariffs, transport costs, and income similarity," Journal of International Economics, Elsevier, vol. 53(1), pages 1-27, February.
- Peter Havlik, 2007.
"Structural Change and Trade Integration on EU–NIS Borders,"
wiiw Research Reports
340, The Vienna Institute for International Economic Studies, wiiw.
- Peter Havlik, 2007. "Structural Change and Trade Integration on EU-NIS Borders," FIW Working Paper series 003, FIW.
- P. Buitelaar & H.A.M. van Kerkhoff, 2010. "The performance of EU foreign trade: a sectoral analysis," DNB Occasional Studies 801, Netherlands Central Bank, Research Department.
- Vladimir Benacek & Jiri Podpiera & Ladislav Prokop, 2005. "Determining Factors of Czech Foreign Trade: A Cross-Section Time Series Perspective," Working Papers 2005/03, Czech National Bank, Research Department.
- Jonathan Eaton & Sam Kortum & Brent Neiman & John Romalis, 2010.
"Trade and the global recession,"
Working Paper Research
196, National Bank of Belgium.
- Sam Kortum & John Romalis & Brent Neiman & Jonathan Eaton, 2010. "Trade and the Global Recession," 2010 Meeting Papers 1340, Society for Economic Dynamics.
- Jonathan Eaton & Samuel Kortum & Brent Neiman & John Romalis, 2011. "Trade and the Global Recession," NBER Working Papers 16666, National Bureau of Economic Research, Inc.
- Samuel S. Kortum & Jonathan Eaton & Brent Neiman & John Romalis, 2010. "Trade and the Global Recession," DEGIT Conference Papers c015_002, DEGIT, Dynamics, Economic Growth, and International Trade.
- Rudolfs Bems & Robert C Johnson & Kei-Mu Yi, 2010.
"Demand Spillovers and the Collapse of Trade in the Global Recession,"
IMF Economic Review,
Palgrave Macmillan, vol. 58(2), pages 295-326, December.
- Kei-Mu Yi & Rudolfs Bems & Robert C. Johnson, 2010. "Demand Spillovers and the Collapse of Trade in the Global Recession," IMF Working Papers 10/142, International Monetary Fund.
- Escaith, Hubert, 2009.
"Trade Collapse, Trade Relapse and Global Production Networks: Supply Chains in the Great Recession,"
18433, University Library of Munich, Germany.
- Escaith, Hubert, 2009. "Trade Collapse, Trade Relapse and Global Production Networks: Supply Chains in the Great Recession," MPRA Paper 18274, University Library of Munich, Germany.
- Baldwin, Richard E & Martin, Philippe & Ottaviano, Gianmarco I P, 2001.
" Global Income Divergence, Trade, and Industrialization: The Geography of Growth Take-Offs,"
Journal of Economic Growth,
Springer, vol. 6(1), pages 5-37, March.
- Baldwin, Richard & Martin, Philippe & Ottaviano, Gianmarco Ireo Paolo, 1998. "Global Income Divergence, Trade and Industrialization: The Geography of Growth Take-Offs," CEPR Discussion Papers 1803, C.E.P.R. Discussion Papers.
- Richard E. Baldwin & Philippe Martin & Gianmarco I. P. Ottaviano, 1998. "Global Income Divergence, Trade and Industrializatiion: The Geography of Growth Take-Offs," NBER Working Papers 6458, National Bureau of Economic Research, Inc.
- Baldwin, Richard E. & Martin, Philippe & Ottaviano, Gianmarco I.P., 1998. "Global Income Divergence, Trade and Industrialisation: The Geography of Growth Take-Offs," Working Paper Series 496, Research Institute of Industrial Economics.
- Kao, Chihwa, 1999. "Spurious regression and residual-based tests for cointegration in panel data," Journal of Econometrics, Elsevier, vol. 90(1), pages 1-44, May.
- Martin, Reiner & Fidrmuc, Jarko, 2011. "FDI, Trade and Growth in CESEE Countries," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue 1.
- James E. Anderson & Eric van Wincoop, 2004.
NBER Working Papers
10480, National Bureau of Economic Research, Inc.
- Warwick J McKibbin & Andy Stoeckel, 2009.
"Modelling the Global Financial Crisis,"
CAMA Working Papers
2009-25, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
- Badi H. Baltagi & James M. Griffin & Weiwen Xiong, 2000. "To Pool Or Not To Pool: Homogeneous Versus Hetergeneous Estimations Applied to Cigarette Demand," The Review of Economics and Statistics, MIT Press, vol. 82(1), pages 117-126, February.
- Chauffour, Jean-Pierre & Farole, Thomas, 2009. "Trade finance in crisis : market adjustment or market failure ?," Policy Research Working Paper Series 5003, The World Bank.
- Young, Alwyn, 1995. "The Tyranny of Numbers: Confronting the Statistical Realities of the East Asian Growth Experience," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 641-80, August.
- David S. Jacks & Christopher M. Meissner & Dennis Novy, 2008. "Trade Costs, 1870-2000," American Economic Review, American Economic Association, vol. 98(2), pages 529-34, May.
- Peter C.B. Phillips & Hyungsik R. Moon, 1999.
"Nonstationary Panel Data Analysis: An Overview of Some Recent Developments,"
Cowles Foundation Discussion Papers
1221, Cowles Foundation for Research in Economics, Yale University.
- Peter Phillips & Hyungsik Moon, 2000. "Nonstationary panel data analysis: an overview of some recent developments," Econometric Reviews, Taylor & Francis Journals, vol. 19(3), pages 263-286.
- Julia Woerz & Olga Pindyuk, 2008. "Trade in Services: Note on the Measurement and Quality of Data Sources," FIW Research Reports series I-001, FIW.
- David Hummels, 2007. "Transportation Costs and International Trade in the Second Era of Globalization," Journal of Economic Perspectives, American Economic Association, vol. 21(3), pages 131-154, Summer.
- Robert C. Feenstra, .
"Integration Of Trade And Disintegration Of Production In The Global Economy,"
Department of Economics
98-06, California Davis - Department of Economics.
- Robert C. Feenstra, 1998. "Integration of Trade and Disintegration of Production in the Global Economy," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 31-50, Fall.
- Robert Feenstra, 2003. "Integration Of Trade And Disintegration Of Production In The Global Economy," Working Papers 986, University of California, Davis, Department of Economics.
- Irwin, Douglas A., 2002. "Long-run trends in world trade and income," World Trade Review, Cambridge University Press, vol. 1(01), pages 89-100, March.
- Jerry Coakley, Ana-Maria Fuertes, Ron Smith, 2001.
"Small sample properties of panel time-series estimators with I(1) errors,"
Computing in Economics and Finance 2001
191, Society for Computational Economics.
- Ron Smith & Ana-Maria Fuertes & Jerry Coakley, 2001. "Small Sample Properties of Panel Time-series Estimators with I(1) Errors," Working Papers wp01-08, Warwick Business School, Finance Group.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Birgit Riedler).
If references are entirely missing, you can add them using this form.