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Production Linkage of Asia and Europe via Central and Eastern Europe

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Author Info

  • Ando, Mitsuyo

    ()
    (Faculty of Business and Commerce, Keio University)

  • Kimura, Fukunari

    ()
    (Faculty of Economics, Keio University)

Abstract

This paper investigates the novel development of machinery trade pattern in the Central and Eastern Europe (CEE) and analyzes the extent and depth of production networks in Europe from the perspective of their links with East Asia during the past 15 years, 1995~2010. Our descriptive analysis based on the total value of trade and the extensive margin demonstrates further production fragmentation in Europe, shifting from Western Europe (CEE production sharing to a regional network with more active transactions among CEE countries) to a global link with East Asia via CEE, particularly in the electric machinery sector. Our quantitative analysis verifies the evolution of production networks in Europe, from regional to global. These results partially reflect the reduction in services link costs, the evolution of industrial clustering among CEE countries particularly after the EU enlargement, and the strengthening competence of production networks in East Asia.

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Bibliographic Info

Article provided by Center for Economic Integration, Sejong University in its journal Journal of Economic Integration.

Volume (Year): 28 (2013)
Issue (Month): ()
Pages: 204-240

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Handle: RePEc:ris:integr:0598

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Web page: http://econo.sejong.ac.kr/
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Related research

Keywords: The 2nd unbundling; Fragmentation; Agglomeration; Intensive and Extensive Margins; Machinery trade;

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Cited by:
  1. Yoshifumi Fukunaga & John Riandy & Pierre Sauve, . "Introduction and Overview," Chapters, Economic Research Institute for ASEAN and East Asia (ERIA).
  2. Mitsuyo ANDO & Fukunari KIMURA, 2013. "Evolution of Machinery Production Networks: Linkage of North America with East Asia," Working Papers DP-2013-32, Economic Research Institute for ASEAN and East Asia (ERIA).
  3. 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.

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