How far has globalization gone? a tale of two regions

Rodolfo Campos, Samuel Pienknagura and Jacopo Timini

No 2329, Working Papers from Banco de España

Abstract: We study the globalization of trade in Latin America and Asia over the past 25 years and quantify its economic impact. Employing structural gravity models, we first estimate a proxy of trade globalization that captures the ease of trading internationally with respect to trading domestically. The results indicate similar trade globalization patterns in the two regions, albeit with a high degree of heterogeneity within them. Trade globalization has been particularly strong in agriculture, mining and manufacturing, but has lagged in services. Within-region heterogeneity is associated with a set of trade policy instruments, including tariffs, non-tariff measures, WTO membership and trade agreements. Next, we quantify the economic implications of the estimated globalization trends. Simulations of a multi-sector trade model point to heterogeneous long-term impacts of globalization on GDP (some countries exhibiting substantial gains and others experiencing large losses), with no single sector playing a predominant role.

Keywords: trade; globalization; structural gravity; Latin America; Asia (search for similar items in EconPapers)
JEL-codes: F13 F14 F15 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2023-10
New Economics Papers: this item is included in nep-int and nep-sea
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.bde.es/f/webbe/SES/Secciones/Publicaci ... 23/Files/dt2329e.pdf First version, October 2023 (application/pdf)

Related works:
Working Paper: How Far Has Globalization Gone? A Tale of Two Regions (2023)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bde:wpaper:2329

DOI: 10.53479/34612

Access Statistics for this paper

More papers in Working Papers from Banco de España Contact information at EDIRC.
Bibliographic data for series maintained by Ángel Rodríguez. Electronic Dissemination of Information Unit. Research Department. Banco de España ().