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Vertical Specialisation and its Determinants

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  • Hildegunn Kyvik Nordås

Abstract

Vertical specialisation (VS) and outsourcing have gained prominence in international trade recently and could represent an entry point for developing countries into world markets as well as a channel for technology transfer. However, entry into international supply chains often requires just-in-time delivery and close to zero fault rates, making market entry via VS difficult. This paper analyses the importance of infrastructure and quality of institutions for VS, for total trade and with a focus on the clothing and electronics sectors. It is found that good governance and an open trade policy is strongly related to VS in electronics. Infrastructure, particularly ports, is strongly related to VS in the clothing sector.

Suggested Citation

  • Hildegunn Kyvik Nordås, 2008. "Vertical Specialisation and its Determinants," Journal of Development Studies, Taylor & Francis Journals, vol. 44(7), pages 1037-1055.
    • Handle: RePEc:taf:jdevst:v:44:y:2008:i:7:p:1037-1055
    DOI: 10.1080/00220380802150813
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    References listed on IDEAS

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    1. repec:wbk:wbpubs:7421 is not listed on IDEAS
    2. Hausman, Warren H. & Lee, Hau L. & Subramanian, Uma, 2005. "Global logistics indicators, supply chain metrics, and bilateral trade patterns," Policy Research Working Paper Series 3773, The World Bank.
    3. repec:wbk:wbpubs:12426 is not listed on IDEAS
    4. Bruce A. Blonigen & Wesley Wilson, 2006. "New Measures of Port Efficiency Using International Trade Data," NBER Working Papers 12052, National Bureau of Economic Research, Inc.
    5. repec:wbk:wbpubs:12425 is not listed on IDEAS
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    Cited by:

    1. Sanjeev Vasudevan & Suresh Babu Manalaya, 2025. "Trade Continuity and Global Production Sharing in Emerging Economies: Evidence from Panel Gravity Analysis," Working Papers 2025-275, Madras School of Economics,Chennai,India.
    2. Liu, Bin & Wang, Dedong & Xu, Youquan & Liu, Chunlu & Luther, Mark, 2018. "Vertical specialisation measurement of energy embodied in international trade of the construction industry," Energy, Elsevier, vol. 165(PB), pages 689-700.
    3. Céline GIMET & Bernard GUILHON & Nathalie ROUX, 2015. "Social upgrading in globalized production: The case of the textile and clothing industry," International Labour Review, International Labour Organization, vol. 154(3), pages 303-327, September.

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