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Trade and industrialisation after globalisation’s 2nd unbundling: How building and joining a supply chain are different and why it matters

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  • Baldwin, Richard

Abstract

Revolutionary transformations of industry and trade occurred from 1985 to the late-1990s -- the regionalisation of supply chains. Before 1985, successful industrialisation meant building a domestic supply chain. Today, industrialisers join supply chains and grow rapidly because offshored production brings elements that took Korea and Taiwan decades to develop domestically. These changes have not been fully reflected in -- high development theory -- a lacuna that may lead to misinterpretation of data and inattention to important policy questions.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 8768.

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Date of creation: Jan 2012
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Handle: RePEc:cpr:ceprdp:8768

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Keywords: import substitution; production unbundling; trade and industrialisation;

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References

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  1. Ricardo Hausmann & Jason Hwang & Dani Rodrik, 2007. "What you export matters," Journal of Economic Growth, Springer, vol. 12(1), pages 1-25, March.
  2. Robert C. Feenstra & Gordon H. Hanson, 1995. "Foreign Direct Investment and Relative Wages: Evidence from Mexico's Maquiladoras," NBER Working Papers 5122, National Bureau of Economic Research, Inc.
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  6. José R. Sánchez-Fung, 2008. "Book Review: One Economics, Many Recipes: Globalization, Institutions and Economic Growth by Dani Rodrik," Indian Growth and Development Review, Emerald Group Publishing, vol. 1(2), pages 252-256, December.
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  8. Baldwin, Richard E & Martin, Philippe & Ottaviano, Gianmarco I P, 2001. " Global Income Divergence, Trade, and Industrialization: The Geography of Growth Take-Offs," Journal of Economic Growth, Springer, vol. 6(1), pages 5-37, March.
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  14. Richard Baldwin & Frederic Robert-Nicoud, 2007. "Offshoring: General Equilibrium Effects on Wages, Production and Trade," NBER Working Papers 12991, National Bureau of Economic Research, Inc.
  15. Robert Koopman & Zhi Wang & Shang-Jin Wei, 2008. "How Much of Chinese Exports is Really Made In China? Assessing Domestic Value-Added When Processing Trade is Pervasive," NBER Working Papers 14109, National Bureau of Economic Research, Inc.
  16. Pack, Howard & Westphal, Larry E., 1986. "Industrial strategy and technological change : Theory versus reality," Journal of Development Economics, Elsevier, vol. 22(1), pages 87-128, June.
  17. repec:fth:iniesr:430 is not listed on IDEAS
  18. James Markusen, 2005. "Modeling the Offshoring of White-Collar Services: From Comparative Advantage to the New Theories of Trade and FDI," NBER Working Papers 11827, National Bureau of Economic Research, Inc.
  19. Irene Brambilla & Daniel Lederman & Guido Porto, 2010. "Exports, Export Destinations, and Skills," NBER Working Papers 15995, National Bureau of Economic Research, Inc.
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