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Deepening and Widening of Production Networks in ASEAN

Author

Listed:
  • Ayako Obashi

    () (Toyo University and Keio University)

  • Fukunari Kimura

    () (Keio University and Economic Research Institute for ASEAN and East Asia (ERIA))

Abstract

This paper assesses the recent widening and deepening of machinery production networks in ASEAN by using highly disaggregated international trade data over 2007–13. Based on both traditional trade value data analysis and a novel approach to the diversification of exported products and destinations, we confirm the steady development of back-and-forth trade links, notably with East Asian partners, centering on Singapore and Thailand. In addition to the five ASEAN forerunners, Vietnam is an increasingly active player in such networking. Although their degree of participation is still limited, Cambodia, Lao PDR, and Myanmar also show signs of joining production networks.

Suggested Citation

  • Ayako Obashi & Fukunari Kimura, 2017. "Deepening and Widening of Production Networks in ASEAN," Asian Economic Papers, MIT Press, vol. 16(1), pages 1-27, Winter/Sp.
  • Handle: RePEc:tpr:asiaec:v:16:y:2017:i:1:p:1-27
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    References listed on IDEAS

    as
    1. Richard Baldwin & James Harrigan, 2011. "Zeros, Quality, and Space: Trade Theory and Trade Evidence," American Economic Journal: Microeconomics, American Economic Association, vol. 3(2), pages 60-88, May.
    2. Timothy J. Kehoe & Kim J. Ruhl, 2013. "How Important Is the New Goods Margin in International Trade?," Journal of Political Economy, University of Chicago Press, vol. 121(2), pages 358-392.
    3. Fukunari Kimura & Tomohiro Machikita & Yasushi Ueki, 2016. "Technology transfer in ASEAN countries: some evidence from buyer-provided training network data," Economic Change and Restructuring, Springer, vol. 49(2), pages 195-219, August.
    4. Jon Haveman & David Hummels, 2004. "Alternative hypotheses and the volume of trade: the gravity equation and the extent of specialization," Canadian Journal of Economics, Canadian Economics Association, vol. 37(1), pages 199-218, February.
    5. Baldwin, Richard, 2011. "21st century regionalism: Filling the gap between 21st century trade and 20th century trade rules," WTO Staff Working Papers ERSD-2011-08, World Trade Organization (WTO), Economic Research and Statistics Division.
    6. Fukunari KIMURA & Ayako OBASHI, 2010. "International Production Networks in Machinery Industries: Structure and Its Evolution," Working Papers DP-2010-09, Economic Research Institute for ASEAN and East Asia (ERIA).
    7. Ayako Obashi & Fukunari Kimura, 2016. "The Role of China, Japan, and Korea in Machinery Production Networks," International Economic Journal, Taylor & Francis Journals, vol. 30(2), pages 169-190, June.
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    9. Besedes, Tibor & Prusa, Thomas J., 2011. "The role of extensive and intensive margins and export growth," Journal of Development Economics, Elsevier, vol. 96(2), pages 371-379, November.
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    11. Prema-chandra Athukorala, 2011. "Production Networks and Trade Patterns in East Asia: Regionalization or Globalization?," Asian Economic Papers, MIT Press, vol. 10(1), pages 65-95, Winter/Sp.
    12. Debaere, Peter & Mostashari, Shalah, 2010. "Do tariffs matter for the extensive margin of international trade? An empirical analysis," Journal of International Economics, Elsevier, vol. 81(2), pages 163-169, July.
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    JEL classification:

    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • F50 - International Economics - - International Relations, National Security, and International Political Economy - - - General
    • F65 - International Economics - - Economic Impacts of Globalization - - - Finance
    • G00 - Financial Economics - - General - - - General

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