Country and industry-level determinants of vertical specialization-based trade
This paper investigates country and industry-level determinants of vertical specialization-based trade. Industries that engage in this pattern of trade are identified through their use of offshore assembly provisions in the US tariff code. Findings explain why industries engage in vertical specialization-based trade and shed light on factors that enter production location decisions. Identifying factors that encourage vertical specialization-based production and trade will enhance our understanding of industry strategy and how trade patterns will evolve as the process of globalization continues. Results suggest vertical specialization-based trade will continue to grow relative to total trade.
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Volume (Year): 20 (2006)
Issue (Month): 2 ()
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References listed on IDEAS
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- Robert C. Feenstra & Gordon H. Hanson & Deborah L. Swenson, .
"Offshore Assembly From The United States: Production Characteristics Of The 9802 Program,"
Department of Economics
98-10, California Davis - Department of Economics.
- Robert C. Feenstra & Gordon H. Hanson & Deborah L. Swenson, 2000. "Offshore Assembly from the United States: Production Characteristics of the 9802 Program," NBER Chapters, in: The Impact of International Trade on Wages, pages 85-125 National Bureau of Economic Research, Inc.
- Deborah Swenson & Robert Feenstra & Gordon H. Hanson, 2003. "Offshore Assembly From The United States: Production Characteristics Of The 9802 Program," Working Papers 9810, University of California, Davis, Department of Economics.
- Hummels, David & Ishii, Jun & Yi, Kei-Mu, 2001.
"The nature and growth of vertical specialization in world trade,"
Journal of International Economics,
Elsevier, vol. 54(1), pages 75-96, June.
- David Hummels & Jun Ishii & Kei-Mu Yi, 1999. "The nature and growth of vertical specialization in world trade," Staff Reports 72, Federal Reserve Bank of New York.
- James R. Markusen, 1995. "The Boundaries of Multinational Enterprises and the Theory of International Trade," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 169-189, Spring.
- Don Clark & Marchese Serafino & Zarrilli Simonetta, 2000. "Do Dirty Industries Conduct Offshore Assembly In Developing Countries?," International Economic Journal, Taylor & Francis Journals, vol. 14(3), pages 75-86.
- David Hummels & Dana Rapoport & Kei-Mu Yi, 1998. "Vertical specialization and the changing nature of world trade," Economic Policy Review, Federal Reserve Bank of New York, issue Jun, pages 79-99.
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