Vertical Trade Maps

Abstract

We develop a method to map global network production and vertical trade. Based on product-level trade data across a matrix of 75 countries, an index measures the intensity of bilateral vertical trade and a force-directed algorithm lays it out for visualization as a world map of production networks. Three major hubs in the global networks are identified: the USA, Germany and China–Japan. Outside Asia and apart from Mexico, mainly because of its maquiladoras network ties to the USA, we find that developing countries are not yet fully part of the global production networks.