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China in the international fragmentation of production: Evidence from the ICT industry

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  • Alessia Amighini

Abstract

This paper investigates the position of China in the international fragmentation of production in the ICT industry, the most dynamic and globally dispersed sector in the world economy. The evidence shows that during the 1990s China dramatically increased its market shares in ICT products and now ranks among the top three world exporters. Moreover, China has upgraded from mere assembly of imported inputs to the manufacturing of high-tech intermediate goods. As a result, import dependence has declined and the domestic value added of exports has increased. This supports the hypothesis that industrial upgrading occurred in some tradable sectors through technological learning associated with processing trade. Therefore, a pattern of specialization initially dominated by processing trade could be favourable to a country's long-term development, to the extent that entering at the lower end of high-tech sectors is promotive of catching up in more sophisticated technology-intensive production

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Bibliographic Info

Article provided by Cattaneo University (LIUC) in its journal The European Journal of Comparative Economics.

Volume (Year): 2 (2005)
Issue (Month): 2 (December)
Pages: 203-219

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Handle: RePEc:liu:liucej:v:2:y:2005:i:2:p:203-219

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Keywords: China; Fragmentation; Industrial Upgrading; Information and Communication Technology;

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References

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Cited by:
  1. Richard G. Harris & Peter E. Robertson & Jessica Y. Xu, 2010. "The International Effects of China's Growth, Trade and Ecucation Booms," Economics Discussion / Working Papers, The University of Western Australia, Department of Economics 10-04, The University of Western Australia, Department of Economics.
  2. Byron Ganges & Ari Van Assche, 2010. "Global Production Networks in Electronics and Intra-Asian Trade," Working Papers, University of Hawaii Economic Research Organization, University of Hawaii at Manoa 2010-04, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
  3. Klimis Vogiatzoglou, 2009. "Determinants of Export Specialization in ICT Products: A Cross-Country Analysis," Working Papers, International Network for Economic Research - INFER 2009.3, International Network for Economic Research - INFER.
  4. Valli Vittorio, 2009. "The three waves of the fordist model of growth and the case of China," Department of Economics and Statistics Cognetti de Martiis. Working Papers, University of Turin 200905, University of Turin.
  5. Andrea ÉLTETŐ & Katalin VÖLGYI, 2013. "Integrated in the global value chains – trade developments between Hungary and Asia," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, Centre for European Studies, Alexandru Ioan Cuza University, vol. 4, pages 57-79, June.
  6. Donatella Saccone & Valli Vittorio, 2009. "Structural Change and Economic Development in China and India," Department of Economics and Statistics Cognetti de Martiis. Working Papers, University of Turin 200907, University of Turin.
  7. Li, Kunwang & Song, Ligang & Zhao, Xingjun, 2008. "Component Trade and China?s Global Economic Integration," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) RP2008/101, World Institute for Development Economic Research (UNU-WIDER).
  8. Éltető, Andrea, 2014. "A visegrádi országok kereskedelme Ázsiával - a globális termelés lenyomata
    [The trade of the Visegrád countries with Asia - a manifestation of global production]
    ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 586-608.
  9. Enrico Marelli & Marcello Signorelli, 2011. "China and India: Openness, Trade and Effects on Economic Growth," European Journal of Comparative Economics, Cattaneo University (LIUC), Cattaneo University (LIUC), vol. 8(1), pages 129-154, June.
  10. Peter E Robertson & Jessica Y Xu, 2010. "In China's Wake: Has Asia Gained From China's Growth?," Economics Discussion / Working Papers, The University of Western Australia, Department of Economics 10-15, The University of Western Australia, Department of Economics.

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