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Title: |
Country and Industry-Level Determinants of Vertical Specialization-Based Trade |
| Author: |
Clark, Don P. |
| Author
Affiliation: |
University of Tennessee, Knoxville, USA |
| Source: |
International Economic Journal, June 2006, v. 20, no. 2, pp. 211-225 |
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Publication Date: |
June 2006 |
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Abstract: |
This paper investigates country and industry-level determinants of vertical specialization-based trade. Industries that engage in this pattern of trade are identified through their use of offshore assembly provisions in the US tariff code. Findings explain why industries engage in vertical specialization-based trade and shed light on factors that enter production location decisions. Identifying factors that encourage vertical specialization-based production and trade will enhance our understanding of industry strategy and how trade patterns will evolve as the process of globalization continues. Results suggest vertical specializatoin-based trade will continue to grow relative to total trade. |
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