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Global Production Sharing and US-China Trade Relations

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Author Info
Prema-chandra Athukorala ()
Nobuaki Yamashita ()

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Abstract

This paper examines US-China trade relations, focusing on the ongoing process of global production sharing global production sharing—the breakup of the production processes into geographically separated stag—and the resulting trade complementarities between the two countries in world manufacturing trade. The results suggest that the USChina trade imbalance is basically a structural phenomenon resulting from the pivotal role played by China as the final assembly centre in East-Asia centered global production networks. Given the current state of China’s factor market conditions, US-China trade patterns are unlikely to change dramatically in the short to medium run.

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File URL: http://rspas.anu.edu.au/economics/publish/papers/wp2008/wp_econ_2008_22.pdf
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Publisher Info
Paper provided by Australian National University, Economics RSPAS in its series Departmental Working Papers with number 2008-22.

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Length: 43 pages
Date of creation: 2008
Date of revision:
Handle: RePEc:pas:papers:2008-22

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Related research
Keywords: China; global production sharing; U.S.-China trade imbalance;

Find related papers by JEL classification:
F14 - International Economics - - Trade - - - Country and Industry Studies of Trade
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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This page was last updated on 2009-11-11.

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