Vertical Specialization and Value-Added Trade
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Trade in manufactured goods has expanded rapidly. U.S. manufacturing export share of GDP grew by 140 percent between 1960 and 2006. The share of manufacturing output that is exported quadrupled during that period. This fact is puzzling given that manufacturing has not grown as a nominal share of output. At the same time, vertical specialization (VS) trade, trade in goods incorporating imported inputs, has expanded rapidly. This new book examines vertical specialization and value-added trade and the significant change in the types of intermediate goods traded globally.
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