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International trade networks and the integration of Colombia into global trade

In: Globalisation and deglobalisation

Author

Listed:
  • Andrés Murcia

    (Bank of the Republic, Colombia)

  • Hernando Vargas

    (Bank of the Republic, Colombia)

  • Carlos León

    (Bank of the Republic, Colombia)

Abstract

Global trading activity for different types of goods is mapped using network analysis, comparing the mid-1990s with recent years. Variations in trade patterns through time are described and the rise of new players in different sectors is documented. Subsequently, some features of the integration of Colombia into global trade are presented along with some evidence on the impact of this process on the responsiveness of the manufacturing sector to exchange rate shocks. The main conclusions are the following: (i) globalisation has generated important changes in international trade, increasing the links between countries and making the world trade network (WTN) denser, more reciprocal and more clustered; (ii) the rise of China in global trade is perhaps one of the most important developments in recent years; (iii) nevertheless, this process has been uneven across sectors; (iv) the integration of the Colombian economy into global trade has been significant but imperfect; and (iv) the exposure of Colombian manufacturing firms to international markets on both their demand and cost sides may be an important reason why manufacturing output and trade have not responded much to fluctuations in exchange rates.

Suggested Citation

  • Andrés Murcia & Hernando Vargas & Carlos León, 2018. "International trade networks and the integration of Colombia into global trade," BIS Papers chapters, in: Bank for International Settlements (ed.), Globalisation and deglobalisation, volume 100, pages 105-123, Bank for International Settlements.
    • Handle: RePEc:bis:bisbpc:100-07
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    References listed on IDEAS

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    1. Nikhil Patel & Zhi Wang & Shang‐Jin Wei, 2019. "Global Value Chains and Effective Exchange Rates at the Country‐Sector Level," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 51(S1), pages 7-42, December.
    2. Freddy Cepeda-López & Fredy Gamboa-Estrada & Carlos León & Hernán Rincón-Castro, 2019. "The evolution of world trade from 1995 to 2014: A network approach," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 28(4), pages 452-485, May.
    3. Jorge García & David Camilo López & Enrique Montes Uribe & Pilar Esguerra Umaña, 2014. "Una visión general de la política comercial colombiana entre 1950 y 2012," Borradores de Economia 817, Banco de la Republica de Colombia.
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