IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-18-00727.html
   My bibliography  Save this article

Developing Countries' Increasing Weight in World Trade, Openness, and Convergence

Author

Listed:
  • Francisco Alcalá

    () (Universidad de Murcia, Ivie, and CEPR)

  • Marta Solaz

    () (Ivie and Universitat de Valéncia)

Abstract

Over approximately the last two decades, developing countries have substantially increased their weight in global markets. This process is a defining feature of the recent economic globalization and has significantly affected output and employment across countries. To measure and analyze this process from a long-run perspective, we introduce the exporters' relative average income indicator and show how this indicator can be broken down into an openness-income correlation component and a cross-country income inequality component. We use this indicator to study the timing, intensity, and proximate determinants of the changes in the relative weight of richer and poorer countries in international trade over the 1961-2014 period. We also assess the extent to which the recent changes are due to the extraordinary growth of China and how its measurement is affected by the difference between PPP and national account values and by the increasing gap between value-added and gross exports.

Suggested Citation

  • Francisco Alcalá & Marta Solaz, 2018. "Developing Countries' Increasing Weight in World Trade, Openness, and Convergence," Economics Bulletin, AccessEcon, vol. 38(4), pages 2128-2140.
  • Handle: RePEc:ebl:ecbull:eb-18-00727
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/Pubs/EB/2018/Volume38/EB-18-V38-I4-P196.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Daron Acemoglu & David Autor & David Dorn & Gordon H. Hanson & Brendan Price, 2016. "Import Competition and the Great US Employment Sag of the 2000s," Journal of Labor Economics, University of Chicago Press, vol. 34(S1), pages 141-198.
    2. Robert Koopman & Zhi Wang & Shang-Jin Wei, 2014. "Tracing Value-Added and Double Counting in Gross Exports," American Economic Review, American Economic Association, vol. 104(2), pages 459-494, February.
    3. Robert C. Johnson, 2014. "Five Facts about Value-Added Exports and Implications for Macroeconomics and Trade Research," Journal of Economic Perspectives, American Economic Association, vol. 28(2), pages 119-142, Spring.
    4. David H. Autor & David Dorn & Gordon H. Hanson, 2013. "The China Syndrome: Local Labor Market Effects of Import Competition in the United States," American Economic Review, American Economic Association, vol. 103(6), pages 2121-2168, October.
    5. repec:aea:jeclit:v:56:y:2018:i:2:p:620-42 is not listed on IDEAS
    6. 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.
    7. Martin Ravallion, 2018. "Inequality and Globalization: A Review Essay," Journal of Economic Literature, American Economic Association, vol. 56(2), pages 620-642, June.
    8. Johnson, Robert C. & Noguera, Guillermo, 2012. "Accounting for intermediates: Production sharing and trade in value added," Journal of International Economics, Elsevier, vol. 86(2), pages 224-236.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alcalá, Francisco & Solaz, Marta, 2018. "International Relocation of Production and Growth," CEPR Discussion Papers 13422, C.E.P.R. Discussion Papers.

    More about this item

    Keywords

    trade; openness; convergence; globalization; development; China.;

    JEL classification:

    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-18-00727. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (John P. Conley). General contact details of provider: .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.