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Developing Countries' Increasing Weight in World Trade, Openness, and Convergence

Author

Listed:
  • Francisco Alcalá

    (Universidad de Murcia, Ivie, and CEPR)

  • Marta Solaz

    (Ivie and Universitat de Valéncia)

Abstract

Over approximately the last two decades, developing countries have substantially increased their weight in global markets. This process is a defining feature of the recent economic globalization and has significantly affected output and employment across countries. To measure and analyze this process from a long-run perspective, we introduce the exporters' relative average income indicator and show how this indicator can be broken down into an openness-income correlation component and a cross-country income inequality component. We use this indicator to study the timing, intensity, and proximate determinants of the changes in the relative weight of richer and poorer countries in international trade over the 1961-2014 period. We also assess the extent to which the recent changes are due to the extraordinary growth of China and how its measurement is affected by the difference between PPP and national account values and by the increasing gap between value-added and gross exports.

Suggested Citation

  • Francisco Alcalá & Marta Solaz, 2018. "Developing Countries' Increasing Weight in World Trade, Openness, and Convergence," Economics Bulletin, AccessEcon, vol. 38(4), pages 2128-2140.
    • Handle: RePEc:ebl:ecbull:eb-18-00727
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    References listed on IDEAS

    as
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    Cited by:

    1. Alcalá, Francisco & Solaz, Marta, 2018. "International Relocation of Production and Growth," CEPR Discussion Papers 13422, C.E.P.R. Discussion Papers.

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    More about this item

    Keywords

    trade; openness; convergence; globalization; development; China.;
    All these keywords.

    JEL classification:

    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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