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Vertical Specialization and Interregional Trade: Hierarchy of Spatial Production Cycles and Feedback Loop Analysis in the Midwest Economy

In: Trade, Networks and Hierarchies

Author

Listed:
  • Michael Sonis

    (University of Illinois
    Bar Ilan University)

  • Geoffrey J. D. Hewings

    (University of Illinois)

  • Yasuhide Okuyama

    (State University of New York at Buffalo)

Abstract

The renewed interest in international trade has drawn attention to the phenomenon of vertical specialization, the use of imported inputs for producing goods that are exported (see Bruelhart and Hine, 1999). Balassa (1967, p.97) coined the term, vertical specialization; in a recent paper, Hummels et al, (1998) introduced and discussed the following definition of vertical specialization: (1) a good must be produced in multiple sequential stages, (2) two or more countries must specialize in producing some, but not all, stages, and (3) at least one stage must cross an international border more then once… Thus, countries link sequentially to produce a final good.

Suggested Citation

  • Michael Sonis & Geoffrey J. D. Hewings & Yasuhide Okuyama, 2002. "Vertical Specialization and Interregional Trade: Hierarchy of Spatial Production Cycles and Feedback Loop Analysis in the Midwest Economy," Advances in Spatial Science, in: Geoffrey J. D. Hewings & Michael Sonis & David Boyce (ed.), Trade, Networks and Hierarchies, chapter 19, pages 347-364, Springer.
    • Handle: RePEc:spr:adspcp:978-3-662-04786-6_19
    DOI: 10.1007/978-3-662-04786-6_19
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