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Introduction

In: Production Networks and Enterprises in East Asia

Author

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  • Ganeshan Wignaraja

    (Asian Development Bank)

Abstract

Global production networks have been an important feature of the world economy for several decades. They refer to the geographical location of stages of production (such as design, production, assembly, marketing, and service activities) in a cost-effective manner. Different production stages are increasingly located across different countries, linked by a complex web of trade in intermediate inputs and final goods. Multinational manufacturing firms and international buyers play a central coordinating role in guiding the geographical spread of production activities. Key decisions for a lead firm are which stages it keeps in-house, which it outsources to other firms and where it locates them. This type of sophisticated industrial organization is a far cry from the simple textbook notion of a single large vertically integrated factory situated in a country.

Suggested Citation

  • Ganeshan Wignaraja, 2016. "Introduction," ADB Institute Series on Development Economics, in: Ganeshan Wignaraja (ed.), Production Networks and Enterprises in East Asia, edition 1, chapter 0, pages 3-19, Springer.
    • Handle: RePEc:spr:adbchp:978-4-431-55498-1_1
    DOI: 10.1007/978-4-431-55498-1_1
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