Vertical Specialization and Interregional Trade: Hierarchy of Spatial Production Cycles and Feedback Loop Analysis in the Midwest Economy

  • Michael Sonis
  • Geoffrey J. D. Hewings
  • Yasuhide Okuyama
Part of the Advances in Spatial Science book series (ADVSPATIAL)


The renewed interest in international trade has drawn attention to the phenomenon of vertical specialization, the use of imported inputs for producing goods that are exported (see Bruelhart and Hine, 1999). Balassa (1967, p.97) coined the term, vertical specialization; in a recent paper, Hummels et al, (1998) introduced and discussed the following definition of vertical specialization:

(1) a good must be produced in multiple sequential stages, (2) two or more countries must specialize in producing some, but not all, stages, and (3) at least one stage must cross an international border more then once… Thus, countries link sequentially to produce a final good.


Feedback Loop Trade Flow Vertical Specialization Intraindustry Trade Interregional Trade 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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Copyright information

© Springer-Verlag Berlin Heidelberg 2002

Authors and Affiliations

  • Michael Sonis
    • 1
    • 2
  • Geoffrey J. D. Hewings
    • 1
  • Yasuhide Okuyama
    • 3
  1. 1.Regional Economics Applications LaboratoryUniversity of IllinoisUSA
  2. 2.Bar Ilan UniversityIsrael
  3. 3.Department of PlanningState University of New York at BuffaloUSA

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