Decomposing PRC-Japan-US Trade: Vertical Specialization, Ownership, and Organizational Form
Dean, Judith M.; Lovely, Mary E.; Mora, Jesse | November 2009
Abstract
We used the United States (US) International Trade Commission’s uniquely detailed 1995–
2007 PRC customs data to better understand the pattern of trade between the People’s
Republic of China (PRC) and its two largest trading partners, Japan and the US. Our review
finds that only a small share of these flows can be characterized as arm’s length, one-way
trade in final goods. Instead, we found extensive two-way trade, deep vertical specialization,
concentration of trade in computer and communication devices, and a prominent role for
foreign-invested enterprises. While these characteristics define both bilateral relationships,
important differences between the two pairs do emerge, suggesting that trade costs
influence the method by which multinational firms choose to integrate their production with
the PRC. Consequently, we argue that dialogue on East Asian trade liberalization should
include the possibility of significant production gains for the US from its inclusion in any
regional agreements.
Citation
Dean, Judith M.; Lovely, Mary E.; Mora, Jesse. 2009. Decomposing PRC-Japan-US Trade: Vertical Specialization, Ownership, and Organizational Form. © Asian Development Bank. http://hdl.handle.net/11540/3747. License: CC BY 3.0 IGO.Keywords
Project Evaluation & Review Technique
Operations Evaluation
Evaluation
World Trade
Trade Volume
Trade Promotion
Trade Flows
Trade Development
Patterns Of Trade
Resources evaluation
Input output analysis
Import volume
Export volume
Export Development
Economic agreements
International market
Import policy
Export policy
Participatory monitoring and evaluation
Participative management
Foreign trade routes
Trade routes
Foreign trade and employment
Show allCollapse