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China in the international fragmentation of production: Evidence from the ICT industry

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  • Alessia Amighini

Abstract

This paper investigates the position of China in the international fragmentation of production in the ICT industry, the most dynamic and globally dispersed sector in the world economy. The evidence shows that during the 1990s China dramatically increased its market shares in ICT products and now ranks among the top three world exporters. Moreover, China has upgraded from mere assembly of imported inputs to the manufacturing of high-tech intermediate goods. As a result, import dependence has declined and the domestic value added of exports has increased. This supports the hypothesis that industrial upgrading occurred in some tradable sectors through technological learning associated with processing trade. Therefore, a pattern of specialization initially dominated by processing trade could be favourable to a country's long-term development, to the extent that entering at the lower end of high-tech sectors is promotive of catching up in more sophisticated technology-intensive production

Suggested Citation

  • Alessia Amighini, 2005. "China in the international fragmentation of production: Evidence from the ICT industry," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 2(2), pages 203-219, December.
  • Handle: RePEc:liu:liucej:v:2:y:2005:i:2:p:203-219
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    References listed on IDEAS

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    Cited by:

    1. Byron Gangnes & Ari Van Assche, 2010. "Global Production Networks in Electronics and Intra-Asian Trade," LICOS Discussion Papers 25710, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    2. Vittorio Valli & Donatella Saccone, 2009. "Structural Change and Economic Development in China and India," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 6(1), pages 101-129, June.
    3. Kunwang Li & Ligang Song & Xingjun Zhao, 2008. "Component Trade and China's Global Economic Integration," WIDER Working Paper Series RP2008-101, World Institute for Development Economic Research (UNU-WIDER).
    4. Éltető, Andrea, 2014. "A visegrádi országok kereskedelme Ázsiával - a globális termelés lenyomata [The trade of the Visegrád countries with Asia - a manifestation of global production]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 586-608.
    5. Andrea ÉLTETŐ & Katalin VÖLGYI, 2013. "Integrated in the global value chains - trade developments between Hungary and Asia," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 4, pages 57-79, June.
    6. Klimis Vogiatzoglou, 2009. "Determinants of Export Specialization in ICT Products: A Cross-Country Analysis," Working Papers 2009.3, International Network for Economic Research - INFER.
    7. Dilek SAHIN, 2016. "Imalat Sanayinde Rekabet Gucunun Olcumu: Turkiye ve BRIC Ulkeleri Ornegi," Ege Academic Review, Ege University Faculty of Economics and Administrative Sciences, vol. 16(4), pages 709-718.
    8. Richard G. Harris & Peter E. Robertson & Jessica Y. Xu, 2011. "The International Effects of China’s Growth, Trade and Education Booms," The World Economy, Wiley Blackwell, vol. 34(10), pages 1703-1725, October.
    9. Lucia Tajoli & Giulia Felice, 2018. "Global Value Chains Participation and Knowledge Spillovers in Developed and Developing Countries: An Empirical Investigation," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 505-532, July.
    10. Valli Vittorio, 2009. "The three waves of the fordist model of growth and the case of China," Department of Economics and Statistics Cognetti de Martiis. Working Papers 200905, University of Turin.
    11. Peter E Robertson & Jessica Y Xu, 2010. "In China's Wake: Has Asia Gained From China's Growth?," Economics Discussion / Working Papers 10-15, The University of Western Australia, Department of Economics.
    12. -, 2008. "Foreign Direct Investment in Latin America and the Caribbean 2007," La Inversión Extranjera Directa en América Latina y el Caribe, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 1136 edited by Eclac.
    13. Enrico Marelli & Marcello Signorelli, 2011. "China and India: Openness, Trade and Effects on Economic Growth," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 8(1), pages 129-154, June.
    14. Barbieri, Elisa & Di Tommaso, Marco R. & Pollio, Chiara & Rubini, Lauretta, 2020. "Getting the specialization right. Industrialization in Southern China in a sustainable development perspective," World Development, Elsevier, vol. 126(C).

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    More about this item

    Keywords

    China; Fragmentation; Industrial Upgrading; Information and Communication Technology;
    All these keywords.

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment
    • N60 - Economic History - - Manufacturing and Construction - - - General, International, or Comparative

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