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The Nature and Characteristics of Production Networks in East Asia: Evidences from Micro/Panel Data Analyses

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  • Fukunari Kimura

Abstract

Production networks in East Asia, particularly being extended by machinery industries, have presented unprecedented development with their significance in economies in the region, their geographical extension, and their sophistication in combining intra-firm and arm's length transactions. In particular, the fragmentation of production activities together with the formation of industrial agglomerations in developing countries is a novel phenomenon that would lead to an East Asian model of economic development. Starting from a brief review of our conceptual framework based on the fragmentation theory as well as an empirical overview with international trade statistics and others, the paper presents a survey on empirical evidences that have been established by previous micro-data analyses in East Asia and discusses a list of empirical issues that future studies should explore. Topics include (i) the selection of exporters and investors, (ii) organizational structure and spatial design of production networks, (iii) location choice, (iv) impacts of outward FDI on developed countries, and (v) learning and impacts of inward FDI on LDCs.

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Paper provided by Institute of Economic Research, Hitotsubashi University in its series Global COE Hi-Stat Discussion Paper Series with number gd09-093.

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Date of creation: Dec 2009
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Handle: RePEc:hst:ghsdps:gd09-093

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  1. Ayako Obashi, 2008. "Stability of Production Networks in East Asia: Duration and Survival of Trade," Keio/Kyoto Joint Global COE Discussion Paper Series 2008-002, Keio/Kyoto Joint Global COE Program.
  2. Kimura, Fukunari & Takahashi, Yuya & Hayakawa, Kazunobu, 2007. "Fragmentation and parts and components trade: Comparison between East Asia and Europe," The North American Journal of Economics and Finance, Elsevier, vol. 18(1), pages 23-40, February.
  3. Kazunobu HAYAKAWA & Fukunari KIMURA, 2008. "The Effect of Exchange Rate Volatility on International Trade in East Asia," Working Papers d003, Economic Research Institute for ASEAN and East Asia (ERIA).
  4. 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.
  5. Kazunobu HAYAKAWA & Fukunari KIMURA & Tomohiro MACHIKITA, 2008. "Firm-level Analysis of Globalization: A Survey," Working Papers d001, Economic Research Institute for ASEAN and East Asia (ERIA).
  6. Fukunari KIMURA, 2009. "The Spatial Structure of Production/Distribution Networks and Its Implication for Technology Transfers and Spillovers," Working Papers d005, Economic Research Institute for ASEAN and East Asia (ERIA).
  7. Keiko Ito & Kyoji Fukao, 2004. "Physical and Human Capital Deepening and New Trade Patterns in Japan," NBER Working Papers 10209, National Bureau of Economic Research, Inc.
  8. Mitsuyo Ando & Fukinari Kimura, 2003. "The Formation of International Production and Distribution Networks in East Asia," NBER Working Papers 10167, National Bureau of Economic Research, Inc.
  9. Kazunobu HAYAKAWA & Fukunari KIMURA & Toshiyuki MATSUURA, 2009. "Gains from Fragmentation at the Firm Level: Evidence from Japanese Multinationals in East Asia," Working Papers d010, Economic Research Institute for ASEAN and East Asia (ERIA).
  10. Fukunari KIMURA & Ayako Obashi, 2009. "International Production Networks: Comparison between China and ASEAN," Working Papers d004, Economic Research Institute for ASEAN and East Asia (ERIA).
  11. Mary Hallward-Driemeier & Giuseppe Iarossi & Kenneth L. Sokoloff, 2002. "Exports and Manufacturing Productivity in East Asia: A Comparative Analysis with Firm-Level Data," NBER Working Papers 8894, National Bureau of Economic Research, Inc.
  12. Aw, B. -Y. & Hwang, A. R., 1995. "Productivity and the export market: A firm-level analysis," Journal of Development Economics, Elsevier, vol. 47(2), pages 313-332, August.
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