Pahl, Stefan

Timmer, Marcel P.

English

We estimate the domestic value-added content in exports of manufacturing goods (VAX-D ratio) for 91 countries over the period from 1970 to 2013. We find a strong decline in the world VAX-D ratio since the mid-1980s mostly accounted for by the substitution of foreign for domestic intermediates. Using a breakpoint detection method, we identify three waves of vertical specialisation in the world economy: 1970-79, 1986-95 and 1996-08. We find that most countries (79) initiated a period of vertical specialisation at least once. We find strong evidence that the VAX-D ratio correlates negatively with GDP per capita, and that the negative slope is flattening out at higher levels of income

Dissertations of the University of Groningen

Patterns of Vertical Specialisation in Trade:Long-run Evidence for 91 Countries

https://pure.rug.nl/ws/files/78525767/gd182.pdf

Patterns of Vertical Specialisation in Trade:Long-run Evidence for 91 Countries

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Dissertations of the University of Groningen