Global Economic Crisis and Vertical Specialization in Developing Countries
The world has witnessed an impressive increase in trade over the past four decades. World merchandise trade increased from US$217 billion in 1962 to US$22.8 trillion in 2006. While industrialized countries accounted for the vast majority of this gr...
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| Format: | Brief |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2009/04/10536780/global-economic-crisis-vertical-specialization-developing-countries http://hdl.handle.net/10986/11121 |
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okr-10986-111212021-04-23T14:02:54Z Global Economic Crisis and Vertical Specialization in Developing Countries Pitigala, Nihal APPAREL APPAREL SECTOR BASIS POINTS BILATERAL TRADE BORDER INFRASTRUCTURE COMMODITIES COMMODITY COMPARATIVE ADVANTAGE COMPARATIVE ADVANTAGES COST OF FINANCE COST OF TRANSPORT COST REDUCTIONS COUNTRY RISK CUSTOMS DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT FINANCE DRIVING ECONOMIC CRISIS ECONOMIC RISK EXOGENOUS SHOCKS EXPORT-PROCESSING ZONES EXPORTERS EXPORTS FEDERAL RESERVE FEDERAL RESERVE BANK FINANCIAL CRISIS FINANCIAL MARKET FINANCIAL RISK FINANCIAL SYSTEM FOREIGN INVESTMENT FREIGHT FREIGHT COSTS FUTURE RESEARCH GENERALIZED SYSTEM OF PREFERENCES GLOBAL ECONOMIC PROSPECTS GLOBAL TRADE GLOBAL TRADING GLOBALIZATION GRAVITY EQUATION GROWTH IN TRADE HOME COUNTRY IMPACT OF TRADE INDUSTRIAL COUNTRIES INFORMATION TECHNOLOGY INTEREST RATE INTERNATIONAL PRODUCTION INTERNATIONAL TRADE INVENTORY LIBERALIZATION MANUFACTURING INDUSTRIES MOBILITY OPEN ECONOMY OUTPUT OUTSOURCING POLITICAL ECONOMY POLITICAL RISK POLITICAL STABILITY PROTECTIONISM PROTECTIONIST RAILROADS RAPID EXPANSION RAPID GROWTH REGIONALIZATION ROAD ROAD TRANSPORT ROADS TARIFF REDUCTIONS TOLL TRADE BARRIERS TRADE COSTS TRADE FINANCE TRADE FINANCING TRADE FLOWS TRADE INTEGRATION TRADE LIBERALIZATION TRADE MODEL TRADE PATTERNS TRADE POLICY TRADING SYSTEM TRANSACTION COSTS TRANSIT TRANSPORT TRANSPORT COSTS TRANSPORT INFRASTRUCTURE TRANSPORT INFRASTRUCTURE NETWORKS TRANSPORTATION TRANSPORTATION COSTS VERTICAL SPECIALIZATION WAGES WELFARE GAINS WORLD ECONOMY WORLD TRADE WORLD TRADE ORGANIZATION The world has witnessed an impressive increase in trade over the past four decades. World merchandise trade increased from US$217 billion in 1962 to US$22.8 trillion in 2006. While industrialized countries accounted for the vast majority of this growth, between 1985 and 2006, developing countries' total trade increased from US$1.1 trillion to US$8.4 trillion, growing at an average annual rate of 9.8 percent, outpacing the world trade growth of 8.7 percent over this period. As the current economic and financial crisis unfolds, the world is now witnessing a dramatic and unexpectedly rapid contraction of trade, far beyond what would be expected in a typical Keynesian-style contraction (Baldwin, 2009). Developing countries are expected to be adversely affected as the volume of world trade is expected to decline by more than 2 percent in 2009, the first such decline since 1982 (World Bank, 2009). The emergence of vertical specialization has allowed a large number of developing countries to exploit their comparative advantages at a much finer level of specialization in global production chains, enabling them to both boost their exports and diversify away from traditional, commodity-based exports. 2012-08-13T14:12:29Z 2012-08-13T14:12:29Z 2009-04 http://documents.worldbank.org/curated/en/2009/04/10536780/global-economic-crisis-vertical-specialization-developing-countries http://hdl.handle.net/10986/11121 English PREM Notes; No. 133 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Brief Publications & Research |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
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English |
| topic |
APPAREL APPAREL SECTOR BASIS POINTS BILATERAL TRADE BORDER INFRASTRUCTURE COMMODITIES COMMODITY COMPARATIVE ADVANTAGE COMPARATIVE ADVANTAGES COST OF FINANCE COST OF TRANSPORT COST REDUCTIONS COUNTRY RISK CUSTOMS DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT FINANCE DRIVING ECONOMIC CRISIS ECONOMIC RISK EXOGENOUS SHOCKS EXPORT-PROCESSING ZONES EXPORTERS EXPORTS FEDERAL RESERVE FEDERAL RESERVE BANK FINANCIAL CRISIS FINANCIAL MARKET FINANCIAL RISK FINANCIAL SYSTEM FOREIGN INVESTMENT FREIGHT FREIGHT COSTS FUTURE RESEARCH GENERALIZED SYSTEM OF PREFERENCES GLOBAL ECONOMIC PROSPECTS GLOBAL TRADE GLOBAL TRADING GLOBALIZATION GRAVITY EQUATION GROWTH IN TRADE HOME COUNTRY IMPACT OF TRADE INDUSTRIAL COUNTRIES INFORMATION TECHNOLOGY INTEREST RATE INTERNATIONAL PRODUCTION INTERNATIONAL TRADE INVENTORY LIBERALIZATION MANUFACTURING INDUSTRIES MOBILITY OPEN ECONOMY OUTPUT OUTSOURCING POLITICAL ECONOMY POLITICAL RISK POLITICAL STABILITY PROTECTIONISM PROTECTIONIST RAILROADS RAPID EXPANSION RAPID GROWTH REGIONALIZATION ROAD ROAD TRANSPORT ROADS TARIFF REDUCTIONS TOLL TRADE BARRIERS TRADE COSTS TRADE FINANCE TRADE FINANCING TRADE FLOWS TRADE INTEGRATION TRADE LIBERALIZATION TRADE MODEL TRADE PATTERNS TRADE POLICY TRADING SYSTEM TRANSACTION COSTS TRANSIT TRANSPORT TRANSPORT COSTS TRANSPORT INFRASTRUCTURE TRANSPORT INFRASTRUCTURE NETWORKS TRANSPORTATION TRANSPORTATION COSTS VERTICAL SPECIALIZATION WAGES WELFARE GAINS WORLD ECONOMY WORLD TRADE WORLD TRADE ORGANIZATION |
| spellingShingle |
APPAREL APPAREL SECTOR BASIS POINTS BILATERAL TRADE BORDER INFRASTRUCTURE COMMODITIES COMMODITY COMPARATIVE ADVANTAGE COMPARATIVE ADVANTAGES COST OF FINANCE COST OF TRANSPORT COST REDUCTIONS COUNTRY RISK CUSTOMS DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT FINANCE DRIVING ECONOMIC CRISIS ECONOMIC RISK EXOGENOUS SHOCKS EXPORT-PROCESSING ZONES EXPORTERS EXPORTS FEDERAL RESERVE FEDERAL RESERVE BANK FINANCIAL CRISIS FINANCIAL MARKET FINANCIAL RISK FINANCIAL SYSTEM FOREIGN INVESTMENT FREIGHT FREIGHT COSTS FUTURE RESEARCH GENERALIZED SYSTEM OF PREFERENCES GLOBAL ECONOMIC PROSPECTS GLOBAL TRADE GLOBAL TRADING GLOBALIZATION GRAVITY EQUATION GROWTH IN TRADE HOME COUNTRY IMPACT OF TRADE INDUSTRIAL COUNTRIES INFORMATION TECHNOLOGY INTEREST RATE INTERNATIONAL PRODUCTION INTERNATIONAL TRADE INVENTORY LIBERALIZATION MANUFACTURING INDUSTRIES MOBILITY OPEN ECONOMY OUTPUT OUTSOURCING POLITICAL ECONOMY POLITICAL RISK POLITICAL STABILITY PROTECTIONISM PROTECTIONIST RAILROADS RAPID EXPANSION RAPID GROWTH REGIONALIZATION ROAD ROAD TRANSPORT ROADS TARIFF REDUCTIONS TOLL TRADE BARRIERS TRADE COSTS TRADE FINANCE TRADE FINANCING TRADE FLOWS TRADE INTEGRATION TRADE LIBERALIZATION TRADE MODEL TRADE PATTERNS TRADE POLICY TRADING SYSTEM TRANSACTION COSTS TRANSIT TRANSPORT TRANSPORT COSTS TRANSPORT INFRASTRUCTURE TRANSPORT INFRASTRUCTURE NETWORKS TRANSPORTATION TRANSPORTATION COSTS VERTICAL SPECIALIZATION WAGES WELFARE GAINS WORLD ECONOMY WORLD TRADE WORLD TRADE ORGANIZATION Pitigala, Nihal Global Economic Crisis and Vertical Specialization in Developing Countries |
| relation |
PREM Notes; No. 133 |
| description |
The world has witnessed an impressive
increase in trade over the past four decades. World
merchandise trade increased from US$217 billion in 1962 to
US$22.8 trillion in 2006. While industrialized countries
accounted for the vast majority of this growth, between 1985
and 2006, developing countries' total trade increased
from US$1.1 trillion to US$8.4 trillion, growing at an
average annual rate of 9.8 percent, outpacing the world
trade growth of 8.7 percent over this period. As the current
economic and financial crisis unfolds, the world is now
witnessing a dramatic and unexpectedly rapid contraction of
trade, far beyond what would be expected in a typical
Keynesian-style contraction (Baldwin, 2009). Developing
countries are expected to be adversely affected as the
volume of world trade is expected to decline by more than 2
percent in 2009, the first such decline since 1982 (World
Bank, 2009). The emergence of vertical specialization has
allowed a large number of developing countries to exploit
their comparative advantages at a much finer level of
specialization in global production chains, enabling them to
both boost their exports and diversify away from
traditional, commodity-based exports. |
| format |
Publications & Research :: Brief |
| author |
Pitigala, Nihal |
| author_facet |
Pitigala, Nihal |
| author_sort |
Pitigala, Nihal |
| title |
Global Economic Crisis and Vertical Specialization in Developing Countries |
| title_short |
Global Economic Crisis and Vertical Specialization in Developing Countries |
| title_full |
Global Economic Crisis and Vertical Specialization in Developing Countries |
| title_fullStr |
Global Economic Crisis and Vertical Specialization in Developing Countries |
| title_full_unstemmed |
Global Economic Crisis and Vertical Specialization in Developing Countries |
| title_sort |
global economic crisis and vertical specialization in developing countries |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2009/04/10536780/global-economic-crisis-vertical-specialization-developing-countries http://hdl.handle.net/10986/11121 |
| _version_ |
1764415601411883008 |