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Product Fragmentation and Trade Patterns in East Asia Author info | Abstract | Publisher info | Download info | Related research | Statistics Prema-chandra Athukorala ()
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product fragmentation - the cross-border dispersion of component production/assembly within vertically integrated production processes - is an important feature of the deepening structural interdependence of the world economy. This paper examines the implications of this phenomenon for global and regional trade patterns, with special emphasis on countries in East Asia, using a new data set culled from the UN trade database. It is found that, while 'fragmentation trade' has generally grown faster than total world trade in manufacturing, the degree of dependence of East Asia on this new form of international specialisation is proportionately larger compared to North America and Europe. The upshot is that international product fragmentation has made the East Asian growth dynamism increasingly reliant on extra-regional trade, strengthening the case for a global, rather than a regional, approach to trade and investment policymaking.
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Paper provided by Australian National University, Economics RSPAS in its series Departmental Working Papers with number
2003-21.
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Length: 69 pages
Date of creation: Oct 2003Date of revision:
Handle: RePEc:pas:papers:2003-21Contact details of provider: Postal: The Administrator, Canberra ACT 0200 Phone: +61 2 6125 2188 Fax: +61 2 6125 3700 Email: Web page: http://rspas.anu.edu.au/economics/publications.php More information through EDIRC
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Keywords: product fragmentation ; globalisation ; multinational enterprises ; Other versions of this item:
Find related papers by JEL classification: F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
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