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Vertical specialization across the world: A relative measure

  • Amador, João
  • Cabral, Sónia

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.

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Article provided by Elsevier in its journal The North American Journal of Economics and Finance.

Volume (Year): 20 (2009)
Issue (Month): 3 (December)
Pages: 267-280

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Handle: RePEc:eee:ecofin:v:20:y:2009:i:3:p:267-280
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/620163

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