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Overview of Foreign Direct Investment, Trade, and Global Value Chains in East Asia

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  • Ayako Obashi

    (Aoyama Gakuin University)

Abstract

This paper provides an overview of the patterns and trends of foreign direct investment (FDI) and trade as well as the formation and development of international production networks or global value chains in East Asia, with a special focus on Association of Southeast Asian Nations Member States. To conduct data observations and analyses, we rely on trade data disaggregated by stage in the production process, FDI inflows data by sector, and international input–output tables. East Asian countries trade manufactured parts and components intensively with each other whilst exporting capital goods and consumption goods to countries outside the region. Considering a complementary relationship between trade and FDI in evolving production fragmentation and offshoring, we investigate how and to what extent East Asian countries have been integrated into regional and global value chains, focusing on the machinery sectors.

Suggested Citation

  • Ayako Obashi, 2022. "Overview of Foreign Direct Investment, Trade, and Global Value Chains in East Asia," Working Papers DP-2021-50, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:wpaper:dp-2021-50
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    Cited by:

    1. Shandre Mugan Thangavelu & Shujiro Urata & Dionisius Narjoko, 2022. "The Post COVID-19 and RCEP: Pandemic Recovery in East Asia," Chapters, in: Fukunari Kimura & Shandre Mugan Thangavelu & Dionisius Narjoko (ed.), Regional Comprehensive Economic Partnership: Implications, Challenges, and Future Growth of East Asia and ASEAN, chapter 7, pages 171-194, Economic Research Institute for ASEAN and East Asia (ERIA).

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    More about this item

    Keywords

    Developing East Asia; FDI; Trade; Production networks;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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