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The universal pathway to commodity structure upgrading in global trade evolution

Author

Listed:
  • Xiaomeng Li

    (Beijing Normal University)

  • Hongbo Cai

    (Beijing Normal University)

  • Siyu Huang

    (Beijing Normal University
    University of Oxford)

  • Jiajun Ma

    (Beijing Normal University)

  • Qinghua Chen

    (Beijing Normal University)

Abstract

Some scholars have proposed that economies grow by upgrading the commodities they produce and export. Product space theory holds that the export structure is determined by a country’s factor endowment and technological level, proposing the revealed comparative advantage (RCA) to analyze the specialization on commodities for countries. With the development of global trade, the network of multilateral trade relations has become increasingly hierarchical and complex. It would, therefore, be valuable to identify general patterns across countries of upgrading the commodity structure in the evolution of their participation in global trade. This paper shows that a typical pattern of change in the dominant types of foreign trade occurs when an economy has grown to a certain scale. With economic development, the advantages of high-technology commodities in trade gradually become more prominent.

Suggested Citation

  • Xiaomeng Li & Hongbo Cai & Siyu Huang & Jiajun Ma & Qinghua Chen, 2022. "The universal pathway to commodity structure upgrading in global trade evolution," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 17(4), pages 1047-1067, October.
    • Handle: RePEc:spr:jeicoo:v:17:y:2022:i:4:d:10.1007_s11403-022-00360-x
    DOI: 10.1007/s11403-022-00360-x
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