Journal Article
Vertical specialization and the changing nature of world trade
Hummels, David L.; Rapoport, Dana; Yi, Kei-Mu (1998-06)
A major feature of globalization has been the enormous increase in international flows of goods and services: countries are now trading much more with each other. In this article, the authors demonstrate the greater role vertical specialization is playing in these increased flows. Vertical specialization occurs when a country uses imported intermediate parts to create a good it later exports--that is, the country links sequentially with other countries to produce a final good. Deriving evidence from four case studies as well as OECD input-output tables, the authors reveal that vertical ...
Economic Policy Review , Volume 4 , Issue Jun , Pages 79-99