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From global factory to global mall? East Asia’s changing trade composition and orientation

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  • Helble, Matthias
  • Ngiang, Boon-Loong

Abstract

This paper examines East Asia’s changing trade composition and geographical orientation from 1999 to 2014 and draws implications for the region and beyond. Over the last two decades, East Asia has been one of the most successful regions in the world to build and connect cross-border supply chains. Introducing a new and simple analytical tool, we show that since 1999, East Asia has been successful in consolidating its role as a global manufacturing hub and is sourcing an increasing share of intermediate and capital goods directly from the region. Being a thriving manufacturing hub has also triggered rising demand for consumption goods. All East Asian countries, except the PRC, are selling an increasing share of their consumption goods within the region. Furthermore, more consumption goods from outside the region are also being attracted to East Asia. If these trends were to continue, East Asia has the potential to transform into one of the world’s largest “malls”.

Suggested Citation

  • Helble, Matthias & Ngiang, Boon-Loong, 2016. "From global factory to global mall? East Asia’s changing trade composition and orientation," Japan and the World Economy, Elsevier, vol. 39(C), pages 37-47.
    • Handle: RePEc:eee:japwor:v:39:y:2016:i:c:p:37-47
    DOI: 10.1016/j.japwor.2016.06.001
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    2. Shin-ichi Fukuda & Mariko Tanaka, 2017. "The Impacts of Emerging Asia on Global Financial Markets," CIRJE F-Series CIRJE-F-1050, CIRJE, Faculty of Economics, University of Tokyo.
    3. Matthias Helble, 2018. "Toward a Consumer-Centered Economy and Its Implications for International Trade and Asia's Development," Asian Economic Papers, MIT Press, vol. 17(3), pages 56-74, Fall.
    4. Helble, Matthias, 2018. "Shifting Towards a Consumer-Centered Economy and the Implications for International Trade," ADBI Working Papers 812, Asian Development Bank Institute.

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    More about this item

    Keywords

    Trade; Global value chains; Trade composition; Trade orientation; Consumption goods; Intermediate goods; East Asia; Japan; ASEAN; Republic of Korea; China;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • N15 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Asia including Middle East

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