Are Production Networks Passé in East Asia? Not Yet
Obashi, Ayako; Kimura, Fukunari | June 2018
Many people have a vague notion that the room for expanding international production networks is almost exhausted and that is why international trade has slowed down since the recovery from the great trade collapse. This paper presents evidence against such belief in the East Asian context by classifying finely disaggregated international trade data into five categories based on the stages of the production process. Our through data examinations show that the slowdown in world trade and East Asian trade was attributed mainly to sluggish growth in trade of primary goods and processed raw materials. In contrast, East Asian trade in manufactured parts and components and the assembled end products within international production networks mostly seen in machinery industries, continues to expand steadily, underpinned by the intensive margin growth. We argue the East Asian production networks did not slow down and the potentiality of the production networks has not been exhausted yet.
CitationObashi, Ayako; Kimura, Fukunari. 2018. Are Production Networks Passé in East Asia? Not Yet. © Economic Research Institute for ASEAN and East Asia. http://hdl.handle.net/11540/8414.
Trade And Development
Food Security And Trade
Regional development bank
Communication in rural development
Labor and globalization
Regional trading blocs
Foreign trade and employment
Foreign trade regulation