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Production Linkage of Asia and Europe via Central and Eastern Europe


  • Ando, Mitsuyo

    () (Faculty of Business and Commerce, Keio University)

  • Kimura, Fukunari

    () (Faculty of Economics, Keio University)


This paper investigates the novel development of machinery trade pattern in the Central and Eastern Europe (CEE) and analyzes the extent and depth of production networks in Europe from the perspective of their links with East Asia during the past 15 years, 1995~2010. Our descriptive analysis based on the total value of trade and the extensive margin demonstrates further production fragmentation in Europe, shifting from Western Europe (CEE production sharing to a regional network with more active transactions among CEE countries) to a global link with East Asia via CEE, particularly in the electric machinery sector. Our quantitative analysis verifies the evolution of production networks in Europe, from regional to global. These results partially reflect the reduction in services link costs, the evolution of industrial clustering among CEE countries particularly after the EU enlargement, and the strengthening competence of production networks in East Asia.

Suggested Citation

  • Ando, Mitsuyo & Kimura, Fukunari, 2013. "Production Linkage of Asia and Europe via Central and Eastern Europe," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 28, pages 204-240.
  • Handle: RePEc:ris:integr:0598

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    Cited by:

    1. Tseng Shoiw-Mei, 2015. "Poland’s Trade with East Asia: An Outlier Approach," Folia Oeconomica Stetinensia, Sciendo, vol. 15(2), pages 81-100, December.
    2. 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.
    3. Mitsuyo ANDO & Fukunari KIMURA, 2013. "What Are the Opportunities and Challenges for ASEAN?," Working Papers DP-2013-31, Economic Research Institute for ASEAN and East Asia (ERIA).
    4. Andrea Elteto & Agnes Szunomar, 2015. "Ties of Visegrád countries with East Asia – trade and investment," IWE Working Papers 214, Institute for World Economics - Centre for Economic and Regional Studies- Hungarian Academy of Sciences.
    5. Yoshifumi Fukunaga & John Riandy & Pierre Sauve, . "Introduction and Overview," Chapters, Economic Research Institute for ASEAN and East Asia (ERIA).
    6. Mitsuyo Ando & Fukunari Kimura, 2014. "Evolution of Machinery Production Networks: Linkage of North America with East Asia," Asian Economic Papers, MIT Press, vol. 13(3), pages 121-160, Fall.
    7. Andrea Éltet? & Ágnes Szunomár, 2016. "Chinese investment and trade ? strengthening ties with Central and Eastern Europe," International Journal of Business and Management, International Institute of Social and Economic Sciences, vol. 4(1), pages 24-48, February.
    8. Yoshino, Naoyuki & Abidhadjaev, Umid, 2016. "Impact of Infrastructure Investment on Tax: Estimating Spillover Effects of the Kyushu High-Speed Rail Line in Japan on Regional Tax Revenue," ADBI Working Papers 574, Asian Development Bank Institute.
    9. repec:era:wpaper:dp-2015-49 is not listed on IDEAS
    10. repec:eee:ecmode:v:70:y:2018:i:c:p:115-126 is not listed on IDEAS

    More about this item


    The 2nd unbundling; Fragmentation; Agglomeration; Intensive and Extensive Margins; Machinery trade;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production


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