Vertical Specialization and Interregional Trade: Hierarchy of Spatial Production Cycles and Feedback Loop Analysis in the Midwest Economy

Michael Sonis, Geoffrey J. D. Hewings, Yasuhide Okuyama

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

The renewed interest in international trade has drawn attention to the phenomenon of vertical specialization, the use of imported inputs for producing goods that are exported (see Bruelhart and Hine, 1999). Balassa (1967, p.97) coined the term, vertical specialization; in a recent paper, Hummels et al, (1998) introduced and discussed the following definition of vertical specialization:(1) a good must be produced in multiple sequential stages, (2) two or more countries must specialize in producing some, but not all, stages, and (3) at least one stage must cross an international border more then onceldots Thus, countries link sequentially to produce a final good.
Original languageEnglish (US)
Title of host publicationTrade, Networks and Hierarchies: Modeling Regional and Interregional Economies
EditorsGeoffrey J. D. Hewings, Michael Sonis, David Boyce
Place of PublicationBerlin
PublisherSpringer
Pages347-364
Number of pages18
ISBN (Electronic)9783662047866
ISBN (Print)9783540430872, 9783642077128
DOIs
StatePublished - 2002

Publication series

NameAdvances in Spatial Science
ISSN (Print)1430-9602
ISSN (Electronic)2197-9375

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