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Fragmentation And Trade Of Machinery Parts And Components In Mekong Region

Author

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  • HIROYUKI TAGUCHI

    (Saitama University, 225 Shimo-Ohkubo, Sakura-ku, Saitama 338-8570, Japan)

  • NI LAR

    (Chiang Mai University, 239/Huay Kaew Road, Suthep, Maung, Chiang Mai 50200, Thailand)

Abstract

This paper examines the trade of machinery parts and components between Thailand and the other Mekong countries though gravity model, for the purpose of assessing the existing production networks in Mekong region by applying fragmentation theory. The findings are: First, the evolution of production networks between Thailand and Vietnam was identified in terms of their two-way trade integration. Second, the trade intensity between Thailand and Vietnam was explained by the fragmentation factors, i.e., their gaps in per capita GDP and the relatively lower service-link costs in Vietnam. Third, the trade less-integration of Thailand with Cambodia and Myanmar was explained by their higher service-link costs.

Suggested Citation

  • Hiroyuki Taguchi & Ni Lar, 2015. "Fragmentation And Trade Of Machinery Parts And Components In Mekong Region," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 60(05), pages 1-21, December.
    • Handle: RePEc:wsi:serxxx:v:60:y:2015:i:05:n:s0217590815500411
    DOI: 10.1142/S0217590815500411
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    References listed on IDEAS

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    Cited by:

    1. Kenji Nozaki, 2016. "Progress in Intra-industry Trade in the Greater Mekong Sub-region," Foreign Trade Review, , vol. 51(2), pages 147-161, May.
    2. Taguchi, Hiroyuki & Zhao, Jun, 2022. "China’s global value chain linkage and logistics performances in emerging ASEAN economies," MPRA Paper 113808, University Library of Munich, Germany.
    3. Hiroyuki Taguchi & Thet Mon Soe, 2021. "Myanmar’s Manufacturing Exports After the Lifting of Economic Sanctions," Foreign Trade Review, , vol. 56(2), pages 147-164, May.
    4. Taguchi, Hiroyuki, 2021. "Participations in global value chains and service-link costs in emerging ASEAN economies," MPRA Paper 105268, University Library of Munich, Germany.
    5. Hiroyuki Taguchi & Mon Soe Thet, 2021. "Quantitative linkage between global value chains’ backward participation and logistics performance in the host country: a structural gravity model analysis of emerging ASEAN economies," Asia-Pacific Journal of Regional Science, Springer, vol. 5(2), pages 453-475, June.
    6. Hiroyuki Taguchi & Ni Lar, 2016. "Suitability of fragmentation model in East Asia," Economics Bulletin, AccessEcon, vol. 36(3), pages 1771-1783.
    7. Taguchi, Hiroyuki, 2021. "Manufacturing exports after the lifting of economic sanctions in Myanmar," MPRA Paper 107956, University Library of Munich, Germany.

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