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Economic Integration and Network Trade: A Comparison of? East Asia? and the European Union

Author

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  • Son Thanh Nguyen

    (Institute of Political Economics Ho Chi Minh National Academy of Politics 135 Nguyen Phong Sac Nghia Tan Cau Giay Hanoi Vietnam)

  • Yanrui Wu

    (Economics, Business School University of Western Australia 35 Stirling Highway Perth, WA 6000 Australia Author-email: yanrui.wu@uwa.edu.au)

Abstract

The emergence of production networks has changed the structure of international trade, which is characterized by a large share of intra-regional trade flows and a rising value of intermediate goods trade or network trade between countries within the same region. This paper investigates the change in impact of trade determinants with the formation of regional production networks. At the global level, the results show that intermediate goods exports are more sensitive to trade barriers than total goods exports. At the regional level, the comparison reveals that, despite the efforts directed toward export market diversification in East Asia, the region is still more dependent on other regions’ economic conditions than the European Union is.

Suggested Citation

  • Son Thanh Nguyen & Yanrui Wu, 2020. "Economic Integration and Network Trade: A Comparison of? East Asia? and the European Union," Asian Economic Papers, MIT Press, vol. 19(1), pages 19-37, Winter/Sp.
    • Handle: RePEc:tpr:asiaec:v:19:y:2020:i:1:p:19-37
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