How India fits into global production sharing: Experience, prospects and policy options
AbstractGlobal production sharingâ€”the break-up of the production process into geographically separated stagesâ€”is an increasingly important facet of economic globalization that opens up opportunities for countries to specialize in different slices (tasks) of the production process depending on their relative cost advantage. This paper examines Indiaâ€™s role in global production sharing from a comparative East Asian perspective in order to contribute to the contemporary policy debate in India on the link between export performance and â€˜jobless growthâ€™ in domestic manufacturing in India. The analysis reveals that India has so far failed fitting into global production networks in electronics and electrical goods, which have been the prime movers of export dynamism in China and the other high-performing East Asian countries. Further reforms to improve the overall investment climate is even more important for reaping gains from this new form of international exchange than for promoting the standard labour intensive exports. There is also a strong case, based on the experiences in East Asia and elsewhere, for combining further reforms with a proactive investment promotion campaign to attract multinational enterprises (MNEs) engaged in global production networks.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by The Australian National University, Arndt-Corden Department of Economics in its series Departmental Working Papers with number 2013-13.
Length: 58 pages
Date of creation: 2013
Date of revision:
Contact details of provider:
Postal: Crawford Building, Lennox Crossing, Building #132, Canberra ACT 0200
Phone: +61 2 6125 4705
Fax: +61 2 6125 5448
Web page: https://crawford.anu.edu.au/acde/publications/
More information through EDIRC
global production sharing; production fragmentation; foreign direct investment; export performance;
Find related papers by JEL classification:
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ronald Jones; Henryk Kierzkowski; Chen Lurong, 2004. "What does the evidence tell us about fragmentation and outsourcing," IHEID Working Papers 09-2004, Economics Section, The Graduate Institute of International Studies.
- Johnson, Robert C. & Noguera, Guillermo, 2012. "Accounting for intermediates: Production sharing and trade in value added," Journal of International Economics, Elsevier, vol. 86(2), pages 224-236.
- Judith M. Dean & K. C. Fung & Zhi Wang, 2011. "Measuring Vertical Specialization: The Case of China," Review of International Economics, Wiley Blackwell, vol. 19(4), pages 609-625, 09.
- Hummels, David & Ishii, Jun & Yi, Kei-Mu, 2001.
"The nature and growth of vertical specialization in world trade,"
Journal of International Economics,
Elsevier, vol. 54(1), pages 75-96, June.
- David Hummels & Jun Ishii & Kei-Mu Yi, 1999. "The nature and growth of vertical specialization in world trade," Staff Reports 72, Federal Reserve Bank of New York.
- Hausman, Jerry A & Taylor, William E, 1981.
"Panel Data and Unobservable Individual Effects,"
Econometric Society, vol. 49(6), pages 1377-98, November.
- Peter Egger, 2005. "Alternative Techniques for Estimation of Cross-Section Gravity Models," Review of International Economics, Wiley Blackwell, vol. 13(5), pages 881-891, November.
- Prema-chandra Athukorala, 2009.
"The Rise of China and East Asian Export Performance: Is the Crowding-Out Fear Warranted?,"
The World Economy,
Wiley Blackwell, vol. 32(2), pages 234-266, 02.
- Prema-chandra Athukorala, 2007. "The Rise of China and East Asian Export Performance: Is the Crowding-out Fear Warranted?," Departmental Working Papers 2007-10, The Australian National University, Arndt-Corden Department of Economics.
- Ronald W. Jones, 2000. "Globalization and the Theory of Input Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 026210086x, December.
- Kei-Mu Yi, 2003.
"Can Vertical Specialization Explain the Growth of World Trade?,"
Journal of Political Economy,
University of Chicago Press, vol. 111(1), pages 52-102, February.
- Kei-Mu Yi, 2000. "Can vertical specialization explain the growth of world trade?," Staff Reports 96, Federal Reserve Bank of New York.
- Wells, Louis T. & Ahmed, Rafiq, 2007. "Making Foreign Investment Safe: Property Rights and National Sovereignty," OUP Catalogue, Oxford University Press, number 9780195310627.
- Gordon H. Hanson & Raymond J. Mataloni & Matthew J. Slaughter, 2003.
"Vertical Production Networks in Multinational Firms,"
NBER Working Papers
9723, National Bureau of Economic Research, Inc.
- Gordon H. Hanson & Raymond J. Mataloni & Matthew J. Slaughter, 2005. "Vertical Production Networks in Multinational Firms," The Review of Economics and Statistics, MIT Press, vol. 87(4), pages 664-678, November.
- Thomas Klier & James Rubenstein, 2008. "Who Really Made Your Car? Restructuring and Geographic change in the Auto Industry," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wrmyc.
- Jean-François Brun & Céline Carrère & Patrick Guillaumont & Jaime de Melo, 2005.
"Has Distance Died? Evidence from a Panel Gravity Model,"
World Bank Economic Review,
World Bank Group, vol. 19(1), pages 99-120.
- Jean-François BRUN & Céline CARRERE & Patrick GUILLAUMONT & Jaime MELO DE, 2002. "Has Distance Died? Evidence from a Panel Gravity Model," Working Papers 200215, CERDI.
- Brun, Jean-François & Carrère, Céline & de Melo, Jaime & Guillaumont, Patrick, 2002. "Has Distance Died? Evidence from a Panel Gravity Model," CEPR Discussion Papers 3500, C.E.P.R. Discussion Papers.
- Timothy J. Sturgeon, 2002. "Modular production networks: a new American model of industrial organization," Industrial and Corporate Change, Oxford University Press, vol. 11(3), pages 451-496, June.
- Yongcheol Shin & Laura Serlenga, 2007. "Gravity models of intra-EU trade: application of the CCEP-HT estimation in heterogeneous panels with unobserved common time-specific factors," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(2), pages 361-381.
- Panagariya, Arvind, 2008.
"India: The Emerging Giant,"
Oxford University Press, number 9780195315035.
- Helpman, Elhanan, 2011. "Understanding Global Trade," Economics Books, Harvard University Press, number 9780674060784.
- Baier, Scott L. & Bergstrand, Jeffrey H., 2007.
"Do free trade agreements actually increase members' international trade?,"
Journal of International Economics,
Elsevier, vol. 71(1), pages 72-95, March.
- Scott L. Baier & Jeffrey H. Bergstrand, 2005. "Do free trade agreements actually increase members’ international trade?," Working Paper 2005-03, Federal Reserve Bank of Atlanta.
- Andres Rodriguez-Clare, 2001.
"Costa Rica's Development Strategy based on Human Capital and Technology: How it got there, the impact of Intel, and lessons for other countries,"
Journal of Human Development and Capabilities,
Taylor & Francis Journals, vol. 2(2), pages 311-324.
- Andrés Rodríguez-Clare, 2001. "Costa Rica’s Development Strategy based on Human Capital and Technology: how it got there, the impact of Intel, and lessons for other countries," Human Development Occasional Papers (1992-2007) HDOCPA-2001-12, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
- Rahul Sen & Sadhana Srivastava, 2012. "Asia' s international production networks: Will India be the next assembly centre?," Working Papers 11812, Asia-Pacific Research and Training Network on Trade (ARTNeT), an initiative of UNESCAP and IDRC, Canada..
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.