Global Production Sharing and US-China Trade Relations
AbstractThis 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 Chinaâs factor market conditions, US-China trade patterns are unlikely to change dramatically in the short to medium run.
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Bibliographic InfoPaper provided by The Australian National University, Arndt-Corden Department of Economics in its series Departmental Working Papers with number 2008-22.
Length: 43 pages
Date of creation: 2008
Date of revision:
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China; global production sharing; U.S.-China trade imbalance;
Find related papers by JEL classification:
- F14 - International Economics - - Trade - - - Empirical 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-11-25 (All new papers)
- NEP-CNA-2008-11-25 (China)
- NEP-INT-2008-11-25 (International Trade)
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- Dean, Judith M. & Lovely, Mary E. & Mora, Jesse, 2009. "Decomposing China-Japan-U.S. trade: Vertical specialization, ownership, and organizational form," Journal of Asian Economics, Elsevier, vol. 20(6), pages 596-610, November.
- Rebecca Tomasik, 2013. "Time zone-related continuity and synchronization effects on bilateral trade flows," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 149(2), pages 321-342, June.
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