This paper investigates the size and scope of global production sharing in the telecom sector by analysing the international pattern of trade in telecom parts and components using bilateral trade statistics over the period 1978-2000. The results show that since 1995 the US have taken over the role of major exporter of parts of telecom equipment to Japan who had dominated world exports of this category since 1978. The US are nowadays driving fragmentation of telecom production on a global scale, with Asia playing the role of most favoured production base for intermediate goods in the sector. However, there is evidence of: a decreasing share of total trade in parts between the US and Asia; of an increasing share of total trade in parts between the US and Mexico; of an increasing trade intensity within Asia. These findings suggest that the emergence of regional groupings both in the Americas and in Asia are likely to reverse the pattern of international fragmentation of production in the telecom sector from global to intra-block vertical division of labour.
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Paper provided by CESPRI, Centre for Research on Innovation and Internationalisation, Universita' Bocconi, Milano, Italy in its series CESPRI Working Papers with number
132.
Length: 30 pages Date of creation: Jul 2002 Date of revision:
Jul 2002 Handle: RePEc:cri:cespri:wp132
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Find related papers by JEL classification: F14 - International Economics - - Trade - - - Country and Industry Studies of Trade O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology O54 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
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