Supply-chain Trade: A Portrait of Global Patterns and Several Testable Hypotheses
This is a shortened version of an earlier draft dated September 2012. We wish to thank Rob Johnson, Sebastian Miroudot, Peter Schott and Andy Bernard for excellent comments and suggestions, and Yuan Zi for excellent research assistance. We also thank the participants in conferences at the WTO (September 2012), Oxford (October 2012) and Hitotsubashi University (December 2012).
The trade associated with international production networks – supply-chain trade for short – is associated with some of the most momentous global economic changes in the last 100 years. It has transformative implications for the world economy. This paper presents a portrait of the global pattern of supply-chain trade and how it has evolved since 1995.