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Supply chain internationalization in East Asia: Inclusiveness and risks

Author

Listed:
  • Fujita, Masahisa
  • Hamaguchi, Nobuaki

Abstract

Supply chain internationalization is promoting a new cascade of agglomeration and dispersion. Headquarter tasks agglomerate in major cities in developed countries, whereas labour†intensive tasks are shed to developing countries where off†shored tasks are geographical concentrated. The entire international supply chain is productivity and welfare†enhancing, raising the efficiency of human resource use. An international supply chain can also be a route for inclusive globalization. Such benefits are offset by potential risk of volatility deriving from idiosyncratic supply shocks triggered by powerful natural disasters and other reasons and from final demand shocks. This case study of East Asia illustrates these points.

Suggested Citation

Handle: RePEc:eee:paresc:v:95:y:2016:i:1:p:81-101
DOI: 10.1111/pirs.12183
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JEL classification:

  • F61 - International Economics - - Economic Impacts of Globalization - - - Microeconomic Impacts
  • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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