Montenegrin Trade Specialization Index

Trade, Finance, Specialization and Synchronization

I investigate the determinants of business cycles synchronization, across regions and over time. I use both international and intranational data to evaluate the linkages between trade in goods, trade in ...nancial assets, specialization and business cycles synchronization in the context of a system of simultaneous equations. In all speci...cations, the results are as follows. (i) Simultaneity i...

The Rise of Vertical Specialization Trade

Vertical specialization (VS) trade, trade in goods that incorporate imported inputs, has grown rapidly since the 1960s. While the share of trade in inputs has not increased, the types of inputs traded have shifted from raw materials to manufactured parts. I argue that declining trade costs are an important explanation for these facts. I present a three stage vertical specialization trade model,...

Trade and Development Index

A Perfect Specialization Model for Gravity Equation in Bilateral Trade based on Production Structure

Although initially originated as a totally empirical relationship to explain the volume of trade between two partners, gravity equation has been the focus of several theoretic models that try to explain it. Specialization models are of great importance in providing a solid theoretic ground for gravity equation in bilateral trade. Some research papers try to improve specialization models by addi...

Specialization in a Dynamic Trade Model : An Overlapping Generations Case

We explore a small-open economy with overlapping generations to understand what is the determinant of trade pattern in the dynamic trade theory. In the representative agent model (Baxter (1992) ), even if there are two goods and two production factors, opening up to trade leads to perfect specialization. Using the overlapping generations model, we find that the heterogeneity of the economic age...