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Does International Fragmentation Occur in Sectors Other Than Machinery?

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  • Fukunari Kimura
  • Kazunobu Hayakawa
  • Zheng Ji

Abstract

It is well established in the published literature that international fragmentation has dramatically developed in East Asia since the 1990s, particularly in machinery industries, including general machinery, electric machinery, transport equipment and precision machinery. However, how far has international fragmentation developed in sectors other than the machinery sector, such as textiles or chemicals? To answer this question, we empirically investigate whether features of international fragmentation appear in other sectors by examining intraregional trade in East Asia. The results indicate that, although some features of international fragmentation can be observed in some other sectors, particularly in the chemical sector, they are most distinctive in the general/electric machinery sector.

Suggested Citation

  • Fukunari Kimura & Kazunobu Hayakawa & Zheng Ji, 2008. "Does International Fragmentation Occur in Sectors Other Than Machinery?," Asian Economic Journal, East Asian Economic Association, vol. 22(4), pages 343-358, December.
    • Handle: RePEc:bla:asiaec:v:22:y:2008:i:4:p:343-358
    DOI: 10.1111/j.1467-8381.2008.00281.x
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    References listed on IDEAS

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    1. Fukao, Kyoji & Ishido, Hikari & Ito, Keiko, 2003. "Vertical intra-industry trade and foreign direct investment in East Asia," Journal of the Japanese and International Economies, Elsevier, vol. 17(4), pages 468-506, December.
    2. Mitsuyo Ando & Fukunari Kimura, 2005. "The Formation of International Production and Distribution Networks in East Asia," NBER Chapters, in: International Trade in East Asia, pages 177-216, National Bureau of Economic Research, Inc.
    3. Fukunari KIMURA, 2006. "International Production and Distribution Networks in East Asia: Eighteen Facts, Mechanics, and Policy Implications," Asian Economic Policy Review, Japan Center for Economic Research, vol. 1(2), pages 326-344, December.
    4. Ito, Takatoshi & Rose, Andrew K. (ed.), 2005. "International Trade in East Asia," National Bureau of Economic Research Books, University of Chicago Press, number 9780226378961, December.
    5. United Nations Industrial Development Organization, 2006. "International Yearbook of Industrial Statistics 2006," Books, Edward Elgar Publishing, number 4083.
    6. Ando, Mitsuyo, 2006. "Fragmentation and vertical intra-industry trade in East Asia," The North American Journal of Economics and Finance, Elsevier, vol. 17(3), pages 257-281, December.
    7. 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.
    8. Takatoshi Ito & Andrew K. Rose, 2005. "International Trade in East Asia," NBER Books, National Bureau of Economic Research, Inc, number ito_05-1, March.
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    Citations

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    Cited by:

    1. Richard Frensch & Jan Hanousek & Evžen Kocenda, 2012. "Incomplete specialization and offshoring across Europe," FIW Working Paper series 091, FIW.
    2. Huang, Yanghua & Salike, Nimesh & Zhong, Feiteng, 2017. "Policy effect on structural change: A case of Chinese intermediate goods trade," China Economic Review, Elsevier, vol. 44(C), pages 30-47.
    3. Kazunobu Hayakawa & Hiroshi Mukunoki, 2023. "The magnification effect in global value chains," Review of International Economics, Wiley Blackwell, vol. 31(1), pages 141-157, February.
    4. Richard Frensch & Jan Hanousek & Evzen Kocenda, 2016. "Trade in Parts and Components across Europe," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 66(3), pages 236-262, June.
    5. Richard Frensch, 2010. "European trade in parts and components : searching (for a trade model for searching) for offshoring evidence," Working Papers 280, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).
    6. Shahrun Nizam Abdul-Aziz & Normala Zulkifli & Norimah Rambeli@Ramli & Noor Al-Huda Abdul Karim & Zainizam Zakariya & Norasibah Abdul Jalil, 2019. "The Determinations of East Asia¡¯s Automobile Trade Using a Gravity Model," Research in World Economy, Research in World Economy, Sciedu Press, vol. 10(5), pages 113-128, December.
    7. Stephan Huber, 2018. "Trade Patterns and Endogenous Institutions: Global Evidence," Contributions to Economics, in: Product Characteristics in International Economics, chapter 0, pages 91-120, Springer.
    8. Kazuhiko Yokota, 2010. "Japan’s Parts and Components Exports and Complementarity with Foreign Investment," Chapters, in: Daisuke Hiratsuka & Yoko Uchida (ed.), Input Trade and Production Networks in East Asia, chapter 5, Edward Elgar Publishing.
    9. Nagano, Mamoru, 2013. "Similarities and differences among cross-border M&A and greenfield FDI determinants: Evidence from Asia and Oceania," Emerging Markets Review, Elsevier, vol. 16(C), pages 100-118.
    10. Ralph Paprzycki & Keiko Ito, 2010. "Investment, Production and Trade Networks as Drivers of East Asian Integration," Global COE Hi-Stat Discussion Paper Series gd09-117, Institute of Economic Research, Hitotsubashi University.

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