Regionalizing global trade patterns, 1981-2001: application of a new method

This paper investigates the establishment of trading regions in the global economy at the national level using a measure of trade intensity and a regional assignment algorithm that generates economically meaningful trading regions. Although there is definite regionalization in the global economy with regard to international trade, there is no evidence of an increase in the concentration of that regionalization over time. The geography of international trade is incredibly dynamic, with change related to political, historical and economic forces. Overall, trading regions have relatively few members and are increasingly a set of geographically close countries.