Changing role of middle income economies in contemporary international trade: comparative analysis

• Main Author: Marcin Gryczka
• Format: Article
• Language: English
• Published: Cracow University of Economics 2020-03-01
• Series: International Entrepreneurship Review
• Subjects: developing countries; middle income economies; international trade; trade structure; trade indicators
• Online Access: https://ier.uek.krakow.pl/index.php/pm/article/view/1976

Objective: The purpose of this paper is to analyze selected international trade indicators, and then to verify, if assumption of growing importance of middle income economies (according to the World Bank classification) can be justified. Research Design & Methods: Article consists of two main parts. In the former some shifts in international merchandise trade in 1995-2018 have been analyzed. In the latter the assessment of selected trade indicators has been included, with particular regard to those, which could be utilized as a basis for verification of growing importance of middle income countries in international trade. Findings: Between 1995 and 2018 there was a noticeable improvement of middle income countries’ share in global merchandise trade, and their competitive advantage improved dramatically. As confirmed by RCA index analysis, middle income economies improved significantly in all manufactures, and was particularly high in labour-intensive and resource-intensive manufactures, as well as in low-skill and technology-intensive manufactures. Contribution & Value Added: Analyses concerning economy groupings are still relatively rare, especially in Polish economic literature. Therefore the presented research can be perceived as a quite fresh approach in this field. Finally, usage of wide collection of trade indicators for verification of middle income economies’ international significance should also be treated as a strength of presented paper.