La Fundación BBVA y el Ivie publican la monografía La medición de la integración comercial en una economía globalizada
The BBVA Foundation and the Ivie publish the study Measuring trade integration in a globalized economy
In an increasingly globalized world, what levels of economic integration have been achieved? The study Measuring trade integration in a globalized economy quantifies these levels and in discussing trade integration refers to both openness as well as network connections that, for some decades now and with growing intensity, have been woven between individuals and economies worldwide.
The study examines the differences found in levels of integration achieved by national and regional economies, in addition to the various economic sectors. Also explored are different geographic and economic patterns of integration, along with the influence of location and distance to markets in the process of trade globalization.
Together with the publication of the study, the INTEGRA database is now open to the public and is available on the BBVA Foundation website. It includes extensive disaggregation of geographic data (85 countries), covering a large span of time (1985-2007).
Indicators of total trade in goods are corrected for by the distance between countries and disaggregated by industry. The database offers three sets of indicators and also distinguishes the two directions of trade flows: exports and imports.
Among the major research findings in the BBVA Foundation-Ivie study are the following:
Arribas, I., F. Pérez and E. Tortosa:
The BBVA Foundation and the Ivie publish the study Measuring trade integration in a globalized economy
In an increasingly globalized world, what levels of economic integration have been achieved? The study Measuring trade integration in a globalized economy quantifies these levels and in discussing trade integration refers to both openness as well as network connections that, for some decades now and with growing intensity, have been woven between individuals and economies worldwide.
The study examines the differences found in levels of integration achieved by national and regional economies, in addition to the various economic sectors. Also explored are different geographic and economic patterns of integration, along with the influence of location and distance to markets in the process of trade globalization.
Together with the publication of the study, the INTEGRA database is now open to the public and is available on the BBVA Foundation website. It includes extensive disaggregation of geographic data (85 countries), covering a large span of time (1985-2007).
Indicators of total trade in goods are corrected for by the distance between countries and disaggregated by industry. The database offers three sets of indicators and also distinguishes the two directions of trade flows: exports and imports.
Among the major research findings in the BBVA Foundation-Ivie study are the following:
- From 1992 to 2007, the advance (by over 50%) of trade openness was responsible for an increase in economic integration of 20%, rising from 30.5% to 36.7%.
- The interconnection between economies is high, but is biased towards interregional trade..
- Globalization has progressed, but still has a long way to go.
- The recession that began in 2008 meant a decline in the degree of global integration (returning to levels of 2006 in 2009), although last year saw a recovery in the pace of growth thanks to an upturn in world exports.
- Distance still matters in the geographic orientation of trade, strengthening exchanges between the countries that are closer.
- Western Europe is the world's leading trade area with more intra regional bias in exports.
- East Asia has overtaken North America in export volume.
- Emerging economies mainly direct their exports outside their regions.
- Eastern Europe and Asia have doubled their degree of openness, with West Asia leading in terms of levels of integration.
- Spanish exports are heavily biased toward Western Europe, to the detriment of the world's fastest growing markets.
- The most integrated countries, combining greater openness with highly diverse business connections, export more and enhance their growth.
- Industries whose export markets have the highest levels of global integration are those with the most technological content, (professional and precision equipment, machinery) and fur and leather. These are sectors whose producers sell all over the world.
- Certain sectors stand out for the high level of integration of their imports (purchases are highly globalized). This is the case of fur and leather, textiles and machinery.
- Machinery, chemicals and automotive industries account for 60% of world trade in manufactures.
- The highest growth was seen in exports of household chemicals, plastics, and electrical and electronic machinery [opportunities for producing countries ... and greater need for importers].
- Spanish Integration: openness vs. connection. In 2007, 43% of Spain's degree of integration was due to its openness and 57% to its degree of connection.
- Domestic bias increases with size. Thus, larger countries such as the United States need to rely less on foreign markets to meet the needs of domestic demand.
Arribas, I., F. Pérez and E. Tortosa:
- "A new interpretation of the distance puzzle based on geographic neutrality", Economic Geography, 87 (3), July, pp. 335-362
Further information - "The Distance Puzzle Revisited: A New Interpretation Based on Geographic Neutrality", Working paper, 16/09, BBVA Foundation.
Further information - "Openness and Geographic Neutrality: How Do They Contribute to International Banking Integration?", Working paper, 05/09, BBVA Foundation.
Further information - "The Determinants of International Financial Integration Revisited: The Role of Networks and Geographic Neutrality", Working paper, 15/09, BBVA Foundation.
Further information