Trade Fragmentation in the World of Fragmented Capitalism: Trade of Liberal, Coordinated, and Dependent Market Economies in Times of Deglobalization

Abstract The article aims to assess the existence of trade fragmentation in the period following the COVID-19 pandemic. In order to capture the phenomenon of deglobalization, two basic conceptualizations are applied – deglobalization is expressed alternatively in terms of geographical or cultural distance. Importantly, trade patterns are analyzed separately in countries representing various types of capitalism. The research is based on the gravity framework and covers the period from 2001 to 2022. Deglobalization, understood as an increased trade-inhibiting impact of geographical distance, is confirmed by the research only partially. This effect is the most pronounced and stable in the import of so-called coordinated market economies. In turn, the hypothesis concerning deglobalization expressed in cultural terms is not supported by the results of the research. Importantly, the scope of the study is limited to the import of a selected group of countries, which naturally also constrains the general applicability of conclusions. The main value added of the research stems from the comparison of deglobalization patterns among countries representing various types of capitalism.