How has the rise of emerging economies changed the global pattern of trade?
- A-Level, IB
- AQA, Edexcel, OCR, IB, Eduqas, WJEC
Last updated 17 Mar 2023
The rise of emerging economies, such as China, India, Brazil, and others, has had a significant impact on the global pattern of trade in recent decades. These countries have become major players in international trade, both as exporters and importers, and have changed the traditional patterns of trade among developed countries.
One way in which emerging economies have influenced global trade is through their increasing share of world exports.
According to data from the World Trade Organization (WTO), the share of developing and emerging economies in world merchandise exports increased from 33% in 1990 to 48% in 2019. In contrast, the share of developed countries in world merchandise exports declined from 66% in 1990 to 52% in 2019. This suggests that emerging economies have become more integrated into the global trading system and are increasingly important players in international trade.
Another way in which emerging economies have influenced global trade is through their changing trade patterns. For example, China has become a major exporter of manufactured goods, particularly electronics and machinery, and has displaced other countries in these sectors.
According to data from the United Nations Conference on Trade and Development (UNCTAD), China's share of world exports of electrical and electronic equipment increased from 4% in 2000 to 30% in 2018. This has had a significant impact on the trade patterns of other countries, particularly in East Asia, where many countries have become integrated into China's supply chains.
Emerging economies have also become important importers of goods, particularly in sectors such as energy, minerals, and food. According to data from the WTO, developing and emerging economies accounted for 58% of world merchandise imports in 2019, up from 42% in 1990. This suggests that emerging economies are not just important exporters, but also major consumers of goods from other countries.
In summary, the rise of emerging economies has influenced the global pattern of trade in multiple ways, including their increasing share of world exports, changing trade patterns, and growing importance as importers.
These trends are likely to continue in the future, and will have important implications for the global trading system and the economies of both developed and developing countries.