Evolution of Machinery Production Networks: Linkage of North America with East Asia
AbstractThis paper investigates the developing pattern of machinery trade and the extent and depth of production networks in North America from the perspective of their links with East Asia in the last two decades. Our descriptive analysis based on the total value of trade and the extensive margin demonstrates the expanding fragmentation of production in North America with a strong connection of Mexico, in addition to the US, with East Asia, particularly in the electric machinery sector. Our quantitative analysis on the total value of trade as well as extensive and intensive margins verifies the existence of such a strong connection with East Asia for machinery imports by North America, where Mexico enhanced a bridging role between East Asia and the US. These results reflect the reduction in services link costs, the further evolution of production sharing in the US-Mexico nexus, and the strengthening competitiveness for production networks in East Asia.
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Bibliographic InfoPaper provided by Economic Research Institute for ASEAN and East Asia (ERIA) in its series Working Papers with number DP-2013-32.
Length: 58 pages.
Date of creation: Nov 2013
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More information through EDIRC
the 2nd unbundling; fragmentation; agglomeration; free trade agreement (FTA); extensive margin;
Find related papers by JEL classification:
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F15 - International Economics - - Trade - - - Economic Integration
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-12-15 (All new papers)
- NEP-HME-2013-12-15 (Heterodox Microeconomics)
- NEP-INT-2013-12-15 (International Trade)
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