IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v91y2024ics0301420724002976.html
   My bibliography  Save this article

Rare earth trade dependence network structure and its impact on trade prices: An industry chain perspective

Author

Listed:
  • Guo, Qing
  • Wang, Yiling

Abstract

Rare earth is an important raw material for military manufacturing, artificial intelligence, and the new energy industry, relating to national security and technological development. The article constructs a rare earth trade dependence network to analyze the overall rare earth trade characteristics, trade associations evolution, and the characteristics of world major economies from 2008 to 2022 and explores the impact of the network characteristics on prices using panel regression. The study found that: (1) the rare earth trade dependence network shows an expanding trend, and the trade is more direct; (2) the trade community features, China occupies an important position in the up and middle stream of the industrial chain, and the United States maintains a leading position in the downstream; (3) there are obvious differences in the degree of dependence of the central countries, and their roles are different in each chain segment; (4) the structural features of the network affect the trade price of rare earths, and there are differences in the key influences in each chain segment. Based on the above findings, the article puts forward corresponding policy suggestions.

Suggested Citation

  • Guo, Qing & Wang, Yiling, 2024. "Rare earth trade dependence network structure and its impact on trade prices: An industry chain perspective," Resources Policy, Elsevier, vol. 91(C).
  • Handle: RePEc:eee:jrpoli:v:91:y:2024:i:c:s0301420724002976
    DOI: 10.1016/j.resourpol.2024.104930
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301420724002976
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.resourpol.2024.104930?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Shuai, Jing & Zhao, Yujia & Shuai, Chuanmin & Wang, Jingjin & Yi, Tian & Cheng, Jinhua, 2023. "Assessing the international co-opetition dynamics of rare earth resources between China, USA, Japan and the EU: An ecological niche approach," Resources Policy, Elsevier, vol. 82(C).
    2. Song, Ying & Bouri, Elie & Ghosh, Sajal & Kanjilal, Kakali, 2021. "Rare earth and financial markets: Dynamics of return and volatility connectedness around the COVID-19 outbreak," Resources Policy, Elsevier, vol. 74(C).
    3. Li, Zheng-Zheng & Meng, Qin & Zhang, Linling & Lobont, Oana-Ramona & Shen, Yijuan, 2023. "How do rare earth prices respond to economic and geopolitical factors?," Resources Policy, Elsevier, vol. 85(PA).
    4. Zhao, Yiran & Gao, Xiangyun & An, Haizhong & Xi, Xian & Sun, Qingru & Jiang, Meihui, 2020. "The effect of the mined cobalt trade dependence Network's structure on trade price," Resources Policy, Elsevier, vol. 65(C).
    5. Thibeault, Al & Ryder, Michael & Tomomewo, Olusegun & Mann, Michael, 2023. "A review of competitive advantage theory applied to the global rare earth industry transition," Resources Policy, Elsevier, vol. 85(PA).
    6. Qing Guo & Zishan Mai, 2022. "A Comparative Study on the Export Competitiveness of Rare Earth Products from China, the United States, Russia and India," Sustainability, MDPI, vol. 14(19), pages 1-31, September.
    7. Shuai, Jing & Peng, Xinjie & Zhao, Yujia & Wang, Yilan & Xu, Wei & Cheng, Jinhua & Lu, Yang & Wang, Jingjin, 2022. "A dynamic evaluation on the international competitiveness of China's rare earth products: An industrial chain and tech-innovation perspective," Resources Policy, Elsevier, vol. 75(C).
    8. Zuo, Zhili & McLellan, Benjamin Craig & Li, Yonglin & Guo, Haixiang & Cheng, Jinhua, 2022. "Evolution and insights into the network and pattern of the rare earths trade from an industry chain perspective," Resources Policy, Elsevier, vol. 78(C).
    9. Wang, Jianliang & Guo, Meiyu & Liu, Mingming & Wei, Xinqiang, 2020. "Long-term outlook for global rare earth production," Resources Policy, Elsevier, vol. 65(C).
    10. Zheng, Shuxian & Zhou, Xuanru & Zhao, Pei & Xing, Wanli & Han, Yawen & Hao, Hongchang & Luo, Wenbo, 2022. "Impact of countries’ role on trade prices from a nickel chain perspective: Based on complex network and panel regression analysis," Resources Policy, Elsevier, vol. 78(C).
    11. Guo, Qing & You, Wenlan, 2023. "A comprehensive evaluation of the international competitiveness of strategic minerals in China, Australia, Russia and India: The case of rare earths," Resources Policy, Elsevier, vol. 85(PA).
    12. Wang, Xingxing & Li, Huajiao & Yao, Huajun & Chen, Zhihua & Guan, Qing, 2019. "Network feature and influence factors of global nature graphite trade competition," Resources Policy, Elsevier, vol. 60(C), pages 153-161.
    13. Apergis, Emmanuel & Apergis, Nicholas, 2017. "The role of rare earth prices in renewable energy consumption: The actual driver for a renewable energy world," Energy Economics, Elsevier, vol. 62(C), pages 33-42.
    14. Salim, Hengky & Sahin, Oz & Elsawah, Sondoss & Turan, Hasan & Stewart, Rodney A., 2022. "A critical review on tackling complex rare earth supply security problem," Resources Policy, Elsevier, vol. 77(C).
    15. Xia, Qifan & Du, Debin & Cao, Wanpeng & Li, Xiya, 2023. "Who is the core? Reveal the heterogeneity of global rare earth trade structure from the perspective of industrial chain," Resources Policy, Elsevier, vol. 82(C).
    16. Leng, Zhihui & Sun, Han & Cheng, Jinhua & Wang, Hai & Yao, Zhen, 2021. "China's rare earth industry technological innovation structure and driving factors: A social network analysis based on patents," Resources Policy, Elsevier, vol. 73(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Henriques, Irene & Sadorsky, Perry, 2023. "Forecasting rare earth stock prices with machine learning," Resources Policy, Elsevier, vol. 86(PA).
    2. Xia, Qifan & Du, Debin & Cao, Wanpeng & Li, Xiya, 2023. "Who is the core? Reveal the heterogeneity of global rare earth trade structure from the perspective of industrial chain," Resources Policy, Elsevier, vol. 82(C).
    3. Yang, Xiaoming & Islam, Md. Monirul & Mentel, Grzegorz & Ahmad, Ashfaq & Vasa, László, 2024. "Synergistic dynamics unveiled: Interplay between rare earth prices, clean energy innovations, and tech companies' market resilience amidst the Covid-19 pandemic and Russia-Ukraine conflict," Resources Policy, Elsevier, vol. 89(C).
    4. Li, Zheng-Zheng & Meng, Qin & Zhang, Linling & Lobont, Oana-Ramona & Shen, Yijuan, 2023. "How do rare earth prices respond to economic and geopolitical factors?," Resources Policy, Elsevier, vol. 85(PA).
    5. Xia, Qifan & Du, Debin & Cao, Wanpeng & Wang, Shengpeng & Li, Xiya, 2024. "The paradox of waste geography? Dynamic evolution and quality evaluation of the global rare earth recycling trade network," Resources Policy, Elsevier, vol. 89(C).
    6. Tang, Qianyong & Li, Huajiao & Qi, Yajie & Li, Yang & Liu, Haiping & Wang, Xingxing, 2023. "The reliability of the trade dependence network in the tungsten industry chain based on percolation," Resources Policy, Elsevier, vol. 82(C).
    7. Gao, Wang & Wei, Jiajia & Zhang, Hongwei & Zhang, Haizhen, 2024. "The higher-order moments connectedness between rare earth and clean energy markets and the role of geopolitical risk:New insights from a TVP-VAR framework," Energy, Elsevier, vol. 305(C).
    8. Di, Jinghan & Wen, Zongguo & Jiang, Meihui & Miatto, Alessio, 2022. "Patterns and features of embodied environmental flow networks in the international trade of metal resources: A study of aluminum," Resources Policy, Elsevier, vol. 77(C).
    9. Xia, Qifan & Du, Debin & Yu, Zihao & Li, Xiya & Zhang, Qiang, 2024. "Coins have both sides: Revealing the structure and pattern of global interdependence network for five critical metals," Resources Policy, Elsevier, vol. 88(C).
    10. Guo, Qing & Mai, Zishan, 2024. "How do seasonal, significant events, and policies affect China's REE export prices? Based on deep learning perspective," Resources Policy, Elsevier, vol. 96(C).
    11. Yu, Yu & Ma, Daipeng & Qian, Yingmiao, 2023. "A resilience measure for the international nickel trade network," Resources Policy, Elsevier, vol. 86(PA).
    12. Seiler, Volker, 2024. "The relationship between Chinese and FOB prices of rare earth elements – Evidence in the time and frequency domain," The Quarterly Review of Economics and Finance, Elsevier, vol. 95(C), pages 160-179.
    13. Madaleno, Mara & Taskin, Dilvin & Dogan, Eyup & Tzeremes, Panayiotis, 2023. "A dynamic connectedness analysis between rare earth prices and renewable energy," Resources Policy, Elsevier, vol. 85(PB).
    14. Thibeault, Al & Ryder, Michael & Tomomewo, Olusegun & Mann, Michael, 2023. "A review of competitive advantage theory applied to the global rare earth industry transition," Resources Policy, Elsevier, vol. 85(PA).
    15. Zhang, Hongwei & Wang, Xinyi & Tang, Jing & Guo, Yaoqi, 2022. "The impact of international rare earth trade competition on global value chain upgrading from the industrial chain perspective," Ecological Economics, Elsevier, vol. 198(C).
    16. Zhao, Guimei & Li, Wenxiu & Geng, Yong & Bleischwitz, Raimund, 2023. "Uncovering the features of global antimony resource trade network," Resources Policy, Elsevier, vol. 85(PA).
    17. Zhang, Hongwei & Cao, Hualin & Guo, Yaoqi, 2024. "The time-varying impact of geopolitical relations on rare earth trade networks: What is the role of China's rare earth export restrictions?," Technological Forecasting and Social Change, Elsevier, vol. 206(C).
    18. Kang, Xinyu & Wang, Minxi & Chen, Lu & Li, Xin, 2023. "Supply risk propagation of global copper industry chain based on multi-layer complex network," Resources Policy, Elsevier, vol. 85(PA).
    19. Huang, Xiaobing & Xie, Jiawei, 2024. "The impact of input efficiency on the value chain embeddedness of rare earth enterprises," Structural Change and Economic Dynamics, Elsevier, vol. 69(C), pages 604-616.
    20. Reboredo, Juan C. & Ugolini, Andrea & Ojea-Ferreiro, Javier, 2024. "Tail risks of energy transition metal prices for commodity prices," Resources Policy, Elsevier, vol. 93(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jrpoli:v:91:y:2024:i:c:s0301420724002976. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/30467 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.