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Who is the core? Reveal the heterogeneity of global rare earth trade structure from the perspective of industrial chain

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  • Xia, Qifan
  • Du, Debin
  • Cao, Wanpeng
  • Li, Xiya

Abstract

Most of the studies on rare earth trade are conducted within the framework of a single product, while the complex industrial structure of rare earth is easy to be neglected. It is still mysterious about the global trade structure and dynamics of rare earth, especially the heterogeneity of trade patterns, trade divisions and determinants. In this paper, with the help of an interdependence identification system, complex network method, GIS space technology and panel regression, the structure, dynamics, and determinants of the international trade network on rare earth are revealed based on industrial chain classification and limited data sources. The results indicate that the global rare earth trade is closely related to China's policy, and the downstream occupies the primary position in the international rare earth supply chain. China has already replaced the developed countries as the core node of the trade network of the whole rare earth industry chain, especially in the downstream field, and continuously promotes the growth and development of global trade community. The world has formed four trade centers, namely East Asia, Europe, North America and Australia, but the dominance of East Asia has been strengthened. The overall decline in global dependence on rare earth means that more and more countries have gained trade advantages, and China has changed from the supply type of the whole industrial chain to the coexistence of supply and demand. Finally, the paper reveals the significant heterogeneity in the determinants of global rare earth trade structure, the downstream has unique technology and relationship thresholds effect.

Suggested Citation

  • Xia, Qifan & Du, Debin & Cao, Wanpeng & Li, Xiya, 2023. "Who is the core? Reveal the heterogeneity of global rare earth trade structure from the perspective of industrial chain," Resources Policy, Elsevier, vol. 82(C).
    • Handle: RePEc:eee:jrpoli:v:82:y:2023:i:c:s030142072300243x
    DOI: 10.1016/j.resourpol.2023.103532
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