Globalization Boosts Trade in Intermediate Goods and Services, Lifting Economies Worldwide
The article looks at how countries trade with each other in terms of products and services. It uses data from 40 countries between 1995 and 2009 to compare trade in parts used to make products versus finished products, and trade in goods versus services. The study finds that countries in East Asia trade more in parts than the EU and NAFTA countries. It also shows that trade in services is less affected by the financial crisis. Overall, the results suggest that increasing trade and economic freedom can have a positive impact on different types of trade.