| Is Trade Integration Leading to Regionalization? Evidence from Cross-Country Network Analysis |
C.T. Vidya, 1 K.P. Prabheesh, 2 Saahil Sirowa, 2 |
1Centre for Economic Social Studies Hyderabad, India
2Indian Institute of Technology Hyderabad, India |
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Corresponding Author:
C.T. Vidya ,Tel: +91-9177549655, Email: vidya@cess.ac.in |
| Copyright ©2020 The Journal of Economic Integration |
| ABSTRACT |
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The present paper empirically analyzes the structural change in world trade over the last two decades by examining trade integration, leadership, and regionalization through a network model. We selected 50 countries encompassing both developed and developing nations and grouped them into 9 regions for 1990, 1992, 2000, 2010, and 2017. We have undertaken two principal analyses: (i) trade intensity indices and regionalization and (ii) linking trade intensity with network analysis. Therefore, this paper reaches a trade-off condition. The major findings of the study are as follows: (i) regional integration is stronger and has increased over the years; (ii) trade regionalization is primarily dominated by developed regions; (iii) trade liberalization has reduced the gap between the center and periphery; (iv) emerging Asian economies have developed as leaders and export hubs of goods in the global market; (v) trade liberalization has transformed and reshaped the world trade structure; and (vi) trade liberalization has not driven the lessening geodesic distance and transport costs from trade, and thus, there are no major gains for many countries.
JEL Classification
F14: Empirical Studies of Trade
F15: Economic Integration
D85: Network Formation and Analysis: Theory |
| Keywords:
Trade Intensity Indices | Network Analysis | Regionalization | Trade Integration | Trade Introversion
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