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Fragmentation in East Asia: Further Evidence

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Author Info

  • Dr. Mitsuyo ANDO

    (Faculty of Business and Commerce, Keio University, Japan)

  • Dr. Fukunari Kimura

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

Abstract

This paper analyzes the spatial pattern of production/distribution networks in East Asia. Two issues are investigated. The one is how the formation of networks has changed the intra- and inter-regional trade pattern. We find that an explosive expansion of intra-regional trade in machinery parts and components, in particular among developing countries, contributes to the current dense networking. The other is how corporate firms effectively organize fragmentation in terms of geographical distance and disintegration. The micro data of Japanese firms indicate that long-distance transactions are mainly intra-firm while transactions in local markets are predominantly arm's-length (inter-firm), suggesting the formation of agglomeration.

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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 DP-2009-20.

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Length: 45 pages.
Date of creation: 01 Oct 2009
Date of revision:
Handle: RePEc:era:wpaper:dp-2009-20

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Cited by:
  1. Bark, Taeho & Kang, Moonsung, 2011. "Asia’s Strategic Participation in the Group of 20 for Global Economic Governance Reform: From the Perspective of International Trade," Working Papers on Regional Economic Integration 74, Asian Development Bank.
  2. Witada Anukoonwattaka, 2011. "Comparative overview of economic profiles and roles of China and India in Asian international production networks," STUDIES IN TRADE AND INVESTMENT, in: India: A New Player in Asian Production Networks?, Studies in Trade and Investment 75, chapter 2, pages 23-53 United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
  3. Baldwin, Richard, 2010. "Sequencing regionalism: Theory, European practice, and lessons for Asia," CEPR Discussion Papers 7852, C.E.P.R. Discussion Papers.
  4. 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.
  5. Thorbecke, Willem, 2008. "The effect of exchange rate volatility on fragmentation in East Asia: Evidence from the electronics industry," Journal of the Japanese and International Economies, Elsevier, vol. 22(4), pages 535-544, December.
  6. Fukunari Kimura & Ayako Obashi, 2011. "Production Networks in East Asia : What We Know So Far," Microeconomics Working Papers 23216, East Asian Bureau of Economic Research.
  7. Kemal Türkcan, 2009. "Vertical Intra-Industry Trade: An Empirical Examination of the Austria’s Auto-Parts Industry," FIW Working Paper series 030, FIW.
  8. 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.
  9. Marco Giansoldati, 2010. "International Fragmentation and Agglomeration: From Theory to Empirics," Working Papers 2010_06, Department of Economics, University of Venice "Ca' Foscari".
  10. Baldwin, Richard & Taglioni, Daria, 2011. "Gravity chains: estimating bilateral trade flows when parts and components trade is important," Working Paper Series 1401, European Central Bank.
  11. Alessandrini, Michele & Fattouh, Bassam & Ferrarini, Benno & Scaramozzino, Pasquale, 2011. "Tariff liberalization and trade specialization: Lessons from India," Journal of Comparative Economics, Elsevier, vol. 39(4), pages 499-513.

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