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Mapping fragmentation: Electronics and automobiles in East Asia and Latin America

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Author Info

  • Sanjaya Lall
  • Manuel Albaladejo
  • Jinkang Zhang

Abstract

"Fragmentation", the relocation of processes or functions across countries in response to cost and other differences, has important implications for development. We discuss the drivers of fragmentation and map it for electronics and automotives in East Asia (EA) and Latin America. For technical reasons, electronics is fragmenting faster world-wide than the auto industry. Electronics networks are more advanced, widespread and integrated in EA than Latin America and the Caribbean (LAC), and are largely responsible for EA's rapid export growth. The auto network is more advanced in LAC but is slower growing and is not integrated into a regional system. Apart from Mexico, LAC lacks an electronics network, partly accounting for the region's weak export performance. We offer insights into the following: Why do industries fragment differently? How can fragmentation be measured? Why does fragmentation in developing countries concentrate on EA and LAC? Why has fragmentation evolved differently in these two regions? Can other developing regions attract and benefit from fragmentation?

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Oxford Development Studies.

Volume (Year): 32 (2004)
Issue (Month): 3 ()
Pages: 407-432

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Handle: RePEc:taf:oxdevs:v:32:y:2004:i:3:p:407-432

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References

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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.
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  5. Sanjaya Lall and Manuel Albaladejo (QEH), . "China’s Competitive Performance: A Threat To East Asian Manufactured Exports?," QEH Working Papers qehwps110, Queen Elizabeth House, University of Oxford.
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  7. Larry Westphal, 2002. "Technology Strategies For Economic Development In A Fast Changing Global Economy," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(4-5), pages 275-320.
  8. Best, Michael, 2001. "The New Competitive Advantage: The Renewal of American Industry," OUP Catalogue, Oxford University Press, number 9780198297451.
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  10. Hummels, David & Ishii, Jun & Yi, Kei-Mu, 2001. "The nature and growth of vertical specialization in world trade," Journal of International Economics, Elsevier, vol. 54(1), pages 75-96, June.
  11. Sanjaya Lall, 2005. "FDI, AGOA and Manufactured Exports by a Landlocked, Least Developed African Economy: Lesotho," Journal of Development Studies, Taylor & Francis Journals, vol. 41(6), pages 998-1022.
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Citations

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Cited by:
  1. Robert A. Blecker & Arslan Razmi, 2009. "Export-led growth, real exchange rates and the fallacy of composition," Working Papers 2009-22, American University, Department of Economics.
  2. Sanjaya Lall (QEH), . "Is African Industry Competing?," QEH Working Papers qehwps122, Queen Elizabeth House, University of Oxford.
  3. Amador, João & Cabral, Sónia, 2009. "Vertical specialization across the world: A relative measure," The North American Journal of Economics and Finance, Elsevier, vol. 20(3), pages 267-280, December.
  4. Desbordes, Rodolphe, 2007. "The sensitivity of U.S. multinational enterprises to political and macroeconomic uncertainty: A sectoral analysis," International Business Review, Elsevier, vol. 16(6), pages 732-750, December.
  5. Amador, João & Cabral, Sónia, 2008. "International fragmentation of production in the Portuguese economy: What do different measures tell us?," MPRA Paper 9783, University Library of Munich, Germany.
  6. Martin Srholec, 2007. "High-Tech Exports from Developing Countries: A Symptom of Technology Spurts or Statistical Illusion?," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 143(2), pages 227-255, July.
  7. Jan Fagerberg, 1996. "Structural Changes in International Trade - Cause, Impact and Response," Working Papers Archives 1996547, Centre for Technology, Innovation and Culture, University of Oslo.
  8. Sanjaya Lall & John Weiss & Hiroshi Oikawa, 2005. "China's Competitive Threat to Latin America: An Analysis for 1990-2002," Oxford Development Studies, Taylor & Francis Journals, vol. 33(2), pages 163-194.
  9. Sanjaya Lall (QEH), John Weiss and Jinkang Zhang, . "The 'Sophistication' Of Exports: A New Measure Of Product Characteristics," QEH Working Papers qehwps123, Queen Elizabeth House, University of Oxford.
  10. Sanjaya Lall & John Weiss, 2004. "People's Republic of China's Competitive Threat to Latin America: An Analysis for 1990-2002," IDB Publications 46578, Inter-American Development Bank.
  11. Kemal Türkcan, 2009. "Vertical Intra-Industry Trade: An Empirical Examination of the Austria’s Auto-Parts Industry," FIW Working Paper series 030, FIW.
  12. Amighini, Alessia A., 2012. "China and India in the international fragmentation of automobile production," China Economic Review, Elsevier, vol. 23(2), pages 325-341.
  13. Razmi, Arslan, 2007. "Pursuing manufacturing-based export-led growth: Are developing countries increasingly crowding each other out?," Structural Change and Economic Dynamics, Elsevier, vol. 18(4), pages 460-482, December.
  14. Lall, Sanjaya & Weiss, John & Zhang, Jinkang, 2006. "The "sophistication" of exports: A new trade measure," World Development, Elsevier, vol. 34(2), pages 222-237, February.
  15. Sanchez-Ancochea, Diego, 2006. "Development trajectories and new comparative advantages: Costa Rica and the Dominican Republic under Globalization," World Development, Elsevier, vol. 34(6), pages 996-1015, June.

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