Product Fragmentation and Trade Patterns in East Asia
International product fragmentation-the cross-border dispersion of component production/assembly within vertically integrated production processes-is an important feature of the deepening structural interdependence of the world economy. This paper examines the implications of this phenomenon for global and regional trade patterns, with special emphasis on countries in East Asia, using a new data set culled from the United Nations Commodity Trade Statistics Database. It is found that, while "fragmentation trade" has generally grown faster than total world trade in manufacturing, the degree of dependence of East Asia on this new form of international specialization is proportionately larger than that of North America and Europe. The upshot is that international product fragmentation has made East Asian growth increasingly reliant on extra-regional trade, strengthening the case for a global, rather than a regional, approach to trade and investment policymaking. Copyright (c) 2006 The Earth Institute at Columbia University and the Massachusetts Institute of Technology.
Volume (Year): 4 (2005)
Issue (Month): 3 (October)
|Contact details of provider:|| Web page: http://mitpress.mit.edu/journals/|
|Order Information:||Web: http://www.mitpressjournals.org/loi/asep|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Prema-Chandra Athukorala & Jayant Menon, 1997. "AFTA and the Investment-Trade Nexus in ASEAN," The World Economy, Wiley Blackwell, vol. 20(2), pages 159-174, 03.
- Gereffi, Gary, 1999. "International trade and industrial upgrading in the apparel commodity chain," Journal of International Economics, Elsevier, vol. 48(1), pages 37-70, June.
- Drusilla K. Brown & Alan V. Deardorff & Robert M Stern, 2002.
"The Effects of Multinational Production on Wages and Working Conditions in Developing Countries,"
483, Research Seminar in International Economics, University of Michigan.
- Drusilla K. Brown & Alan Deardorff & Robert Stern, 2004. "The Effects of Multinational Production on Wages and Working Conditions in Developing Countries," NBER Chapters, in: Challenges to Globalization: Analyzing the Economics, pages 279-330 National Bureau of Economic Research, Inc.
- Drusilla K. Brown & Alan V. Deardorff & Robert M Stern, 2002. "The Effects of Multinational Production on Wages and Working Conditions in Developing Countries," Working Papers 486, Research Seminar in International Economics, University of Michigan.
- Drusilla K. Brown & Alan V. Deardorff & Robert M. Stern, 2003. "The Effects of Multinational Production on Wages and Working Conditions in Developing Countries," NBER Working Papers 9669, National Bureau of Economic Research, Inc.
- Slaughter, Matthew J., 2000. "Production transfer within multinational enterprises and American wages," Journal of International Economics, Elsevier, vol. 50(2), pages 449-472, April.
- Barry, Frank & Bradley, John, 1997.
"FDI and Trade: The Irish Host-Country Experience,"
Royal Economic Society, vol. 107(445), pages 1798-1811, November.
- Barry, F & Bradley, J, 1997. ""FDI and Trade : The Irish Host-Country Experience"," Papers 97/13, College Dublin, Department of Political Economy-.
- Borrus, Michael, 1997. "Left for Dead: Asian Production Networks and the Revival of US Electronics," UCAIS Berkeley Roundtable on the International Economy, Working Paper Series qt2db8s8x6, UCAIS Berkeley Roundtable on the International Economy, UC Berkeley.
- Robert C. Feenstra, .
"Integration Of Trade And Disintegration Of Production In The Global Economy,"
Department of Economics
98-06, California Davis - Department of Economics.
- Robert C. Feenstra, 1998. "Integration of Trade and Disintegration of Production in the Global Economy," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 31-50, Fall.
- Robert Feenstra, 2003. "Integration Of Trade And Disintegration Of Production In The Global Economy," Working Papers 986, University of California, Davis, Department of Economics.
- David L. Hummels & Jun Ishii & Kei-Mu Yi, 1999.
"The nature and growth of vertical specialization in world trade,"
72, Federal Reserve Bank of New York.
- Hummels, David & Ishii, Jun & Yi, Kei-Mu, 2001. "The nature and growth of vertical specialization in world trade," Journal of International Economics, Elsevier, vol. 54(1), pages 75-96, June.
- Gordon H. Hanson & Raymond J. Mataloni, Jr. & Matthew J. Slaughter, 2001.
"Expansion Strategies of U.S. Multinational Firms,"
NBER Working Papers
8433, National Bureau of Economic Research, Inc.
- Marcus Noland, 1995. "China and the International Economic System," Working Paper Series WP95-6, Peterson Institute for International Economics.
- Ng, Francis & Yeats, Alexander, 1999. "Production sharing in East Asia : who does what for whom, and why?," Policy Research Working Paper Series 2197, The World Bank.
- Venables, Anthony J., 1999. "Fragmentation and multinational production," European Economic Review, Elsevier, vol. 43(4-6), pages 935-945, April.
- Peter A. Petri, 1993. "The East Asian Trading Bloc: An Analytical History," NBER Chapters, in: Regionalism and Rivalry: Japan and the United States in Pacific Asia, pages 21-52 National Bureau of Economic Research, Inc.
- Paul Krugman, 1995. "Growing World Trade: Causes and Consequences," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 26(1, 25th A), pages 327-377.
- Jeffrey A. Frankel & Shang-Jin Wei, 1995. "The new regionalism and Asia: impact and options," Pacific Basin Working Paper Series 95-10, Federal Reserve Bank of San Francisco.
- Sharpston, Michael, 1975. "International Sub-Contracting," Oxford Economic Papers, Oxford University Press, vol. 27(1), pages 94-135, March.
- Görg, H & Ruane, F, 1999. "Globalisation and Fragmentation: Evidence from the Electronics Industry in Ireland," Trinity Economics Papers 9911, Trinity College Dublin, Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:tpr:asiaec:v:4:y:2005:i:3:p:1-27. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Kristin Waites)
If references are entirely missing, you can add them using this form.