Vertical Specialization and Interregional Trade: Turbulence Analogy and Feedback Loops Analysis of 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 (Bruelhart, Hine 1999). The term vertical specialization was introduced by Balassa (1967); 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 once. Thus, countries link sequentially to produce a final good.''
Original languageEnglish (US)
Title of host publicationSpatial Change and Interregional Flows in the Integrating Europe
Subtitle of host publicationEssays in Honour of Karin Peschel
EditorsJohannes Bröcker, Hayo Herrmann
Place of PublicationHeidelberg
PublisherPhysica-Verlag HD
Pages201-211
Number of pages11
ISBN (Electronic)9783642575525
ISBN (Print)9783790813449
DOIs
StatePublished - 2001

Publication series

NameContributions to Economics
ISSN (Print)1431-1933
ISSN (Electronic)2197-7178

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