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International production networks and changing trade patterns in East Asia: The case of the electronics industry

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  • Dieter Ernst
  • Paolo Guerrieri

Abstract

The concept of an “international production network “ captures the spread of broader systems of international production which cut across different stages of the value chain but which may, or may not, involve ownership of equity stakes. The concept allows us to analyse the globalization strategies of any particular firm with regard to the following four questions: Where does the firm locate the various stages of the value chain? To what degree does a firm rely on “outsourcing”, and hence what is the relationship between that and the firm's internal production activities? To what degree is control over transactions exercised in a centralized or in a decentralized manner? How do the different elements of these networks hang together? The ideas are applied to the trade links in electronics between firms located in the USA or Japan and countries of East Asia.

Suggested Citation

  • Dieter Ernst & Paolo Guerrieri, 1998. "International production networks and changing trade patterns in East Asia: The case of the electronics industry," Oxford Development Studies, Taylor & Francis Journals, vol. 26(2), pages 191-212.
    • Handle: RePEc:taf:oxdevs:v:26:y:1998:i:2:p:191-212
    DOI: 10.1080/13600819808424153
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    Cited by:

    1. Carl Bonham & Byron Gangnes & Ari Van Assche, 2007. "Fragmentation and East Asia's information technology trade," Applied Economics, Taylor & Francis Journals, vol. 39(2), pages 215-228.
    2. Vijay Kumar Kaul & Tuhina Roy Chowdhury, 2018. "India Stimulating Growth in Bay of Bengal Region: Integrating Key Interests and Strengthening Innovation Capacity," South Asian Survey, , vol. 25(1-2), pages 102-128, March.
    3. Peter Huber & Daniela Kletzan, 2000. "Bestimmungsfaktoren der Integration von Unternehmen in internationale Netzwerke," WIFO Studies, WIFO, number 19531, April.
    4. Jue Wang & Yingqi Wei & Xiaming Liu & Chengang Wang & Hua Lin, 2014. "Simultaneous Impact of the Presence of Foreign MNEs on Indigenous Firms’ Exports and Domestic Sales," Management International Review, Springer, vol. 54(2), pages 195-223, April.
    5. Suder, Gabriele & Liesch, Peter W. & Inomata, Satoshi & Mihailova, Irina & Meng, Bo, 2015. "The evolving geography of production hubs and regional value chains across East Asia: Trade in value-added," Journal of World Business, Elsevier, vol. 50(3), pages 404-416.
    6. Sara Formai & Filippo Vergara Caffarelli, 2016. "Quantifying the productivity effects of global sourcing," Temi di discussione (Economic working papers) 1075, Bank of Italy, Economic Research and International Relations Area.
    7. Fromhold-Eisebith Martina & Eisebith Günter, 2003. "Globale Krise – regionale Gewinner?," ZFW – Advances in Economic Geography, De Gruyter, vol. 47(1), pages 82-96, October.
    8. Dieter Ernst, 2001. "The Internet's Effects on Global Production Networks: Challenges and Opportunities for Managing in Developing Asia," Economics Study Area Working Papers 33, East-West Center, Economics Study Area.
    9. Liu, Chia-Ling (Eunice) & Zhang, Yingying, 2014. "Learning process and capability formation in cross-border buyer–supplier relationships: A qualitative case study of Taiwanese technological firms," International Business Review, Elsevier, vol. 23(4), pages 718-730.
    10. Paolo Guerrieri & Filippo Vergara Caffarelli, 2012. "Trade Openness and International Fragmentation of Production in the European Union: The New Divide?," Review of International Economics, Wiley Blackwell, vol. 20(3), pages 535-551, August.
    11. Liu, Jiali & Yu, Jiang & Chen, Feng & Zhang, Yaokun & Li, Bo, 2022. "How latecomers strategically respond to global-local resources and leverage local ecosystems: Evidence from China's integrated circuit design firms," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
    12. Yanhua Chen & Suqiong Wei & Hongou Zhang & Yuehua Gao, 2019. "Spatiotemporal Evolution of the Taiwanese-Funded Information Technology and Electronics Industry Value Chain in Mainland China," Sustainability, MDPI, vol. 11(11), pages 1-18, June.
    13. Paolo Guerrieri, 2001. "Industrial Districts, ICT and Global Production Networks: The Italian Experience," Economics Study Area Working Papers 16, East-West Center, Economics Study Area.
    14. Dieter Ernst, 2000. "Placing the Networks on the Web: Challenges and Opportunities for Managing in Developing Asia," Economics Study Area Working Papers 05, East-West Center, Economics Study Area.
    15. Kuwamori, Hiroshi & Okamoto, Nobuhiro, 2007. "Industrial Networks between China and the Countries of the Asia-Pacific Region," IDE Discussion Papers 110, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    16. Dieter Ernst, 2002. "Global Production Networks in East Asia's Electronics Industry and Upgrading Perspectives in Malaysia," Economics Study Area Working Papers wp44, East-West Center, Economics Study Area, revised Oct 2003.
    17. Sara Formai & Filippo Vergara Caffarelli, 2015. "Quantifying the productivity e ects of global value chains," Cambridge Working Papers in Economics 1564, Faculty of Economics, University of Cambridge.
    18. Franco Malerba & Keun Lee, 2021. "An evolutionary perspective on economic catch-up by latecomers [Catching-up, forging ahead, and falling behind]," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 30(4), pages 986-1010.
    19. Banji O. Oyeyinka, 2012. "Institutional capacity and policy for latecomer technology development," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 5(1/2), pages 83-110.
    20. Liu, C.-L.E., 2012. "An investigation of relationship learning in cross-border buyer–supplier relationships: The role of trust," International Business Review, Elsevier, vol. 21(3), pages 311-327.
    21. Rasiah, Rajah & Lin, Yeo, 2003. "The Role Of Market, Trust and Government in the Development of the Information Hardware Industry in Taiwan," UNU-INTECH Discussion Paper Series 2003-10, United Nations University - INTECH.
    22. Chao-Tung Wen & Jun-Ming Chen, 2014. "Taiwan: linkage-based Clusters of Innovation – the case of Taiwan’s IT industry," Chapters, in: Jerome S. Engel (ed.), Global Clusters of Innovation, chapter 9, pages 222-246, Edward Elgar Publishing.
    23. Imai, Ken'ichi & Shiu, Jingming, 2007. "A Divergent Path of Industrial Upgrading: Emergence and Evolution of the Mobile Handset Industry in China," IDE Discussion Papers 125, Institute of Developing Economies, Japan External Trade Organization(JETRO).

    More about this item

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment

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