@techreport{119331c5cd544d11afc0cbdb609003f2,
title = "Patterns of Vertical Specialisation in Trade: Long-run Evidence for 91 Countries",
abstract = "We estimate the domestic value-added content in exports of manufacturing goods (VAX-D ratio) for 91 countries over the period from 1970 to 2013. We find a strong decline in the world VAX-D ratio since the mid-1980s mostly accounted for by the substitution of foreign for domestic intermediates. Using a breakpoint detection method, we identify three waves of vertical specialisation in the world economy: 1970-79, 1986-95 and 1996-08. We find that most countries (79) initiated a period of vertical specialisation at least once. We find strong evidence that the VAX-D ratio correlates negatively with GDP per capita, and that the negative slope is flattening out at higher levels of income.",
author = "Stefan Pahl and Timmer, {Marcel P.}",
year = "2019",
language = "English",
series = "GGDC Research Memoranda",
publisher = "Groningen Growth and Development Center",
type = "WorkingPaper",
institution = "Groningen Growth and Development Center",
}