IDEAS home Printed from https://ideas.repec.org/a/nea/journl/y2025i66p36-53.html
   My bibliography  Save this article

World trade concentration and product market segregation

Author

Listed:
  • Gnidchenko, A.

    (Center for Macroeconomic Analysis and Short-Term Forecasting; Institute of Economic Forecasting of the Russian Academy of Sciences, Moscow, Russia
    HSE University, Moscow, Russia)

Abstract

The article examines the link between countries' trade geographic concentration indices at the product markets, both ignoring and accounting for differentiation by partners. I apply CEPII BACI data on trade by 4-digit HS products for 2022. Concentration is interpreted as market power of supplying or purchasing countries, the difference between concentration by suppliers and purchasers is regarded as relative market power of suppliers, and the combination of high bilateral trade flows concentration and moderate or low unilateral trade flows concentration marks product market segregation. The rate of suppliers' dominance depends on export diversification (effective number of suppliers), with a negative sign, and on import diversification (effective number of markets) and the rate of purchasers' dominance, with a positive sign. Products are put into three clusters by the k-means method, relying on concentration indices and their linear combinations (relative market power of suppliers and product market segregation). High diversification is typical for the first cluster; for the second one, concentration by suppliers is high, while being moderate by purchasers; for the third cluster, concentration is high for both suppliers and purchasers, with the dominance of the market power of the latter.

Suggested Citation

  • Gnidchenko, A., 2025. "World trade concentration and product market segregation," Journal of the New Economic Association, New Economic Association, vol. 66(1), pages 36-53.
    • Handle: RePEc:nea:journl:y:2025:i:66:p:36-53
    DOI: 10.31737/22212264_2025_1_36-53
    as

    Download full text from publisher

    File URL: http://www.econorus.org/repec/journl/2025-66-36-53r.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.31737/22212264_2025_1_36-53?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
    ---><---

    More about this item

    Keywords

    concentration; world trade; marker segregation; product;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis

    Statistics

    Access and download statistics

    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:nea:journl:y:2025:i:66:p:36-53. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Alexey Tcharykov (email available below). General contact details of provider: https://edirc.repec.org/data/nearuea.html .

    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.