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The Internationalization of Small and Medium Enterprises in Regional and Global Value Chains

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  • Hank Lim

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  • Fukunari Kimura

Abstract

Production networks and the regional division of labor have been established in East Asia resulting in massive vertical intra-industry trade in parts and components within the region. This phenomenon is known as cross-border production sharing or the fragmentation of production processes into many stages across different countries. New development strategies claim that participation in international production and distribution networks is the key to accelerating economic development in the era of globalization. This process suggests that vertical input-output linkages between local firms and multinational corporations are the most powerful channels to accelerate technology transfers and spillovers. [ADBI Working Paper 231]

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Bibliographic Info

Paper provided by eSocialSciences in its series Working Papers with number id:3113.

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Date of creation: Nov 2010
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Handle: RePEc:ess:wpaper:id:3113

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Keywords: Production; regional; East Asia; development; economic; vertical; spillovers;

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  1. Jan Johanson & Jan-Erik Vahlne, 1977. "The Internationalization Process of the Firm—A Model of Knowledge Development and Increasing Foreign Market Commitments," Journal of International Business Studies, Palgrave Macmillan, vol. 8(1), pages 23-32, March.
  2. Jan Wengel & Edgard Rodriguez, 2006. "SME Export Performance in Indonesia After the Crisis," Small Business Economics, Springer, vol. 26(1), pages 25-37, 02.
  3. Hal HILL, 2006. "Comment on "International Production and Distribution Networks in East Asia: Eighteen Facts, Mechanics, and Policy Implications"," Asian Economic Policy Review, Japan Center for Economic Research, vol. 1(2), pages 345-346.
  4. Giuliani, Elisa & Pietrobelli, Carlo & Rabellotti, Roberta, 2005. "Upgrading in Global Value Chains: Lessons from Latin American Clusters," World Development, Elsevier, vol. 33(4), pages 549-573, April.
  5. Kimura, Fukunari & Ando, Mitsuyo, 2005. "Two-dimensional fragmentation in East Asia: Conceptual framework and empirics," International Review of Economics & Finance, Elsevier, vol. 14(3), pages 317-348.
  6. Fukunari KIMURA, 2006. "International Production and Distribution Networks in East Asia: Eighteen Facts, Mechanics, and Policy Implications," Asian Economic Policy Review, Japan Center for Economic Research, vol. 1(2), pages 326-344.
  7. Shigeaki SHIRAISHI, 2006. "Comment on "International Production and Distribution Networks in East Asia: Eighteen Facts, Mechanics, and Policy Implications"," Asian Economic Policy Review, Japan Center for Economic Research, vol. 1(2), pages 347-348.
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Cited by:
  1. Wignaraja, Ganeshan, 2012. "Engaging Small and Medium Enterprises in Production Networks: Firm-level Analysis of Five ASEAN Economies," ADBI Working Papers 361, Asian Development Bank Institute.

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