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Singapore And Asean In The New Regional Division Of Labor

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  • PREMA-CHANDRA ATHUKORALA

    (Division of Economics, Research School of Pacific and Asian Studies, Australian National University, Canberra, ACT 0200, Australia)

Abstract

This paper examines the implications of international fragmentation of production for trade patterns of Singapore and the other ASEAN economies, with emphasis on their regional and global economic integration. The analysis reveals that the degree of dependence of these countries on this new global division of labor is much larger compared to the other countries of East Asia, Europe and North America. China has emerged as an important trading partner for ASEAN within regional production networks. Network-related trade in parts and components has certainly strengthened economic interdependence among ASEAN countries and between ASEAN, China and the other major economies in East Asia, but this has not lessened the dependence of growth dynamism of these countries on the global economy. The operation of the regional cross-border production networks depends inexorably on trade in final goods with North America and the European Union.

Suggested Citation

  • Prema-Chandra Athukorala, 2008. "Singapore And Asean In The New Regional Division Of Labor," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 53(03), pages 479-508.
    • Handle: RePEc:wsi:serxxx:v:53:y:2008:i:03:n:s0217590808003105
    DOI: 10.1142/S0217590808003105
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    References listed on IDEAS

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    1. Prema-Chandra Athukorala, 2006. "Post-crisis export performance: The Indonesian experience in regional perspective," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 42(2), pages 177-211.
    2. Gene M. Grossman & Elhanan Helpman, 2005. "Outsourcing in a Global Economy," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(1), pages 135-159.
    3. 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.
    4. Huff,W. G., 1997. "The Economic Growth of Singapore," Cambridge Books, Cambridge University Press, number 9780521629447, January.
    5. repec:rus:hseeco:123689 is not listed on IDEAS
    6. Ng, Francis & Yeats, Alexander, 2003. "Major trade trends in East Asia : what are their implications for regional cooperation and growth," Policy Research Working Paper Series 3084, The World Bank.
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    Cited by:

    1. Prema-chandra Athukorala & Hal Hill, 2010. "Asian trade: long-term patterns and key policy issues," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 24(2), pages 52-82, November.
    2. Nilanjan Banik & Khanindra Ch. Das, 2014. "The Location Substitution Effect: Does it Apply for China?," Global Business Review, International Management Institute, vol. 15(1), pages 59-75, March.
    3. Peter Sheehan, 2009. "Beyond Industrialization New Approaches to Development Strategy Based on the Service Sector," Working Papers id:1849, eSocialSciences.
    4. Peter Sheehan, 2008. "Beyond Industrialization: New Approaches to Development Strategy Based on the Service Sector," WIDER Working Paper Series RP2008-60, World Institute for Development Economic Research (UNU-WIDER).
    5. Mia Mikic & Mochamad Pasha (ed.), 2011. "Fighting Irrelevance: The Role of Regional Trade Agreements in International Production Networks in Asia," STUDIES IN TRADE AND INVESTMENT, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), number tipub2597, April.
    6. Shasha Zhao & Marina Papanastassiou & Robert D. Pearce & Chie Iguchi, 2021. "MNE R&D internationalization in developing Asia," Asia Pacific Journal of Management, Springer, vol. 38(3), pages 789-813, September.
    7. Baldwin, Richard, 2010. "Sequencing regionalism: Theory, European practice, and lessons for Asia," CEPR Discussion Papers 7852, C.E.P.R. Discussion Papers.
    8. Prema-chandra Athukorala, 2013. "Global production sharing and trade patterns in East Asia," Departmental Working Papers 2013-10, The Australian National University, Arndt-Corden Department of Economics.
    9. Athukorala, Prema–Chandra & Menon, Jayant, 2010. "Global Production Sharing, Trade Patterns, and Determinants of Trade Flows in East Asia," Working Papers on Regional Economic Integration 41, Asian Development Bank.

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    More about this item

    Keywords

    Production fragmentation; multinational enterprises; trade patterns; China; ASEAN;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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