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Production Sharing and Comparative Advantage: The Cases of East Asia and Mexico

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  • Chong-Sup Kim

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Abstract

The industrial structures and strategy of the country, which exports parts and components, seem to have a significant effect on the pattern of production sharing of the country where assembly takes place. In the case of some East Asian countries, the pattern and the competitiveness in the assembly of final products strongly depends on the industrial structure and production sharing strategy of Japan. However, the relationship between Mexico and the United States seems to be completely different in that the pattern of production sharing of the first has little relationship with the export pattern of the second of parts and components. This difference may be explained through the difference between the United States and Japan in terms of the pattern of production sharing. Japan’s production sharing is based on specialization, whereas the production sharing of the United States is based on intra-industrial trade.

Suggested Citation

  • Chong-Sup Kim, 2002. "Production Sharing and Comparative Advantage: The Cases of East Asia and Mexico," Economía Mexicana NUEVA ÉPOCA, CIDE, División de Economía, vol. 0(2), pages 409-430, July-Dece.
    • Handle: RePEc:emc:ecomex:v:11:y:2002:i:2:p:409-430
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    References listed on IDEAS

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    1. Ng, Francis & Yeats, Alexander, 1999. "Production sharing in East Asia : who does what for whom, and why?," Policy Research Working Paper Series 2197, The World Bank.
    2. Yeats, Alexander J., 1998. "Just how big is global production sharing?," Policy Research Working Paper Series 1871, The World Bank.
    3. Avinash K. Dixit & Gene M. Grossman, 1982. "Trade and Protection with Multistage Production," Review of Economic Studies, Oxford University Press, vol. 49(4), pages 583-594.
    4. Sanyal, Kalyan K, 1983. "Vertical Specialization in a Ricardian Model with a Continuum of Stages of Production," Economica, London School of Economics and Political Science, vol. 50(197), pages 71-78, February.
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