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The Spatial Structure of Production/Distribution Networks and Its Implication for Technology Transfers and Spillovers

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Author Info

  • Fukunari KIMURA

    (Faculty of Economics, Keio University, Japan Economic Research Institute for ASEAN and East Asia, Indonesia)

Abstract

This paper argues that a variety of firm specificity supported by sophisticated inter-firm relationships is essential for understanding the mechanics and spatial structure of international production/distribution networks in East Asia. By mapping the two-dimensional fragmentation framework (Kimura and Ando (2005)) into geographical space, the paper proposes the concept of four layers of transactions in production/distribution networks: (i) local, (ii) sub-regional, (iii) regional, and (iv) the world. The concept effectively bridges geographical extensions of production/ distribution networks and the nature of transactions in terms of intra-firm vs. arm's-length as well as technological/managerial conditions. In addition, the paper discusses the implications of such geographical structure of production/distribution networks for technology transfers/spillovers from multinationals to local firms and claims its importance in new development strategies.

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File URL: http://www.eria.org/ERIA-DP-2009-02.pdf
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Bibliographic Info

Paper provided by Economic Research Institute for ASEAN and East Asia (ERIA) in its series Working Papers with number d005.

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Date of creation: 2009
Date of revision:
Handle: RePEc:era:wpaper:d005

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Related research

Keywords: Fragmentation; new economic geography; firm heterogeneity; multinational enterprises; and technology spillovers.;

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Citations

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Cited by:
  1. Hiratsuka, Daisuke, 2011. "Production Networks in Asia: A Case Study from the Hard Disk Drive Industry," ADBI Working Papers 301, Asian Development Bank Institute.
  2. Lee, Hyun-Hoon & Park, Donghyun & Wang, Jing, 2012. "Different Types of Firms, Products, and Directions of Trade: The Case of the People’s Republic of China," Working Papers on Regional Economic Integration 101, Asian Development Bank.
  3. 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, July.
  4. Fukunari Kimura, 2009. "The Nature and Characteristics of Production Networks in East Asia: Evidences from Micro/Panel Data Analyses," Global COE Hi-Stat Discussion Paper Series gd09-093, Institute of Economic Research, Hitotsubashi University.
  5. Lee, Hyun-Hoon & Park, Donghyun & Wang, Jing, 2013. "Different types of firms, different types of products, and their dynamics: An anatomy of China's imports," China Economic Review, Elsevier, vol. 25(C), pages 62-77.

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