IDEAS home Printed from https://ideas.repec.org/h/unt/ecchap/tipub2624_chap3.html
   My bibliography  Save this book chapter

Can India become an export platform for global operations of MNCs? Perspectives from Japanese and United States MNC affiliates

In: India: A New Player in Asian Production Networks?, Studies in Trade and Investment 75

Author

Listed:
  • Nobuaki Yamashita

    (School of Economics and Finance, La Trobe University, Melbourne, Australia)

Abstract

Due to the fact that the IPN phenomenon has been driven by decisions of multi-national corporations (MNCs) regarding operations and locations of their production systems, chapter III provides an insightful background aimed at understanding the issues involved. It examines the operational characteristics of Japanese MNC affiliates in comparison to United States based MNCs, using affiliate-level data.

Suggested Citation

  • Nobuaki Yamashita, 2011. "Can India become an export platform for global operations of MNCs? Perspectives from Japanese and United States MNC affiliates," STUDIES IN TRADE AND INVESTMENT, in: Witada Anukoonwattaka & Mia Mikic (ed.), India: A New Player in Asian Production Networks?, Studies in Trade and Investment 75, chapter 3, pages 54-77, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
  • Handle: RePEc:unt:ecchap:tipub2624_chap3
    as

    Download full text from publisher

    File URL: http://www.unescap.org/tid/publication/tipub2624-chap3.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Swenson, Deborah L., 2005. "Overseas assembly and country sourcing choices," Journal of International Economics, Elsevier, vol. 66(1), pages 107-130, May.
    2. Grabowski, Richard, 2009. "An alternative Indian model?," Journal of Asian Economics, Elsevier, vol. 20(1), pages 50-61, January.
    3. A. Aggarwal, 2002. "Liberalisation, Multinational Enterprises and Export Performance: Evidence from Indian Manufacturing," Journal of Development Studies, Taylor & Francis Journals, vol. 38(3), pages 119-137.
    4. Gianluca Orefice & Nadia Rocha, 2014. "Deep Integration and Production Networks: An Empirical Analysis," The World Economy, Wiley Blackwell, vol. 37(1), pages 106-136, January.
    5. Henrik Horn & Petros C. Mavroidis & André Sapir, 2010. "Beyond the WTO? An Anatomy of EU and US Preferential Trade Agreements," The World Economy, Wiley Blackwell, vol. 33(11), pages 1565-1588, November.
    6. Kimura, Fukunari & Ando, Mitsuyo, 2005. "Two-dimensional fragmentation in East Asia: Conceptual framework and empirics," International Review of Economics & Finance, Elsevier, vol. 14(3), pages 317-348.
    7. Amador, João & Cabral, Sónia, 2009. "Vertical specialization across the world: A relative measure," The North American Journal of Economics and Finance, Elsevier, vol. 20(3), pages 267-280, December.
    8. Robert C. Feenstra, 2000. "The Impact of International Trade on Wages," NBER Books, National Bureau of Economic Research, Inc, number feen00-1, October.
    9. Pol Antràs & Esteban Rossi-Hansberg, 2009. "Organizations and Trade," Annual Review of Economics, Annual Reviews, vol. 1(1), pages 43-64, May.
    10. James R. Markusen, 2004. "Multinational Firms and the Theory of International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262633078, December.
    11. Athukorala, Prema-chandra & Yamashita, Nobuaki, 2006. "Production fragmentation and trade integration: East Asia in a global context," The North American Journal of Economics and Finance, Elsevier, vol. 17(3), pages 233-256, December.
    12. Kochhar, Kalpana & Kumar, Utsav & Rajan, Raghuram & Subramanian, Arvind & Tokatlidis, Ioannis, 2006. "India's pattern of development: What happened, what follows?," Journal of Monetary Economics, Elsevier, vol. 53(5), pages 981-1019, July.
    13. Razeen Sally & Rahul Sen, 2011. "Trade Policies in Southeast Asia in the Wider Asian Perspective," The World Economy, Wiley Blackwell, vol. 34(4), pages 568-601, April.
    14. Kei-Mu Yi, 2003. "Can Vertical Specialization Explain the Growth of World Trade?," Journal of Political Economy, University of Chicago Press, vol. 111(1), pages 52-102, February.
    15. Kamal Abd-el-Rahman, 1991. "Firms’ competitive and national comparative advantages as joint determinants of trade composition," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 127(1), pages 83-97, March.
    16. Robert E. Lipsey, 2001. "Foreign Direct Investment and the Operations of Multinational Firms: Concepts, History, and Data," NBER Working Papers 8665, National Bureau of Economic Research, Inc.
    17. Arndt, Sven W. & Kierzkowski, Henryk (ed.), 2001. "Fragmentation: New Production Patterns in the World Economy," OUP Catalogue, Oxford University Press, number 9780199243310.
    18. Choi, E. Kwan & Harrigan, James, 2003. "Handbook of International Trade," Staff General Research Papers Archive 11375, Iowa State University, Department of Economics.
    19. Arvind Virmani & Danish A. Hashim, 2010. "Factor Employment, Sources and Sustainability of Output Growth: Analysis of Indian Manufacturing," Working Papers id:2415, eSocialSciences.
    20. Ronald W. Jones, 2000. "Globalization and the Theory of Input Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 026210086x, December.
    21. Yun-Wing Sung, 2007. "Made in China: From World Sweatshop to a Global Manufacturing Center?," Asian Economic Papers, MIT Press, vol. 6(3), pages 43-72, Fall.
    22. Greaney, Theresa M. & Li, Yao, 2009. "Assessing foreign direct investment relationships between China, Japan, and the United States," Journal of Asian Economics, Elsevier, vol. 20(6), pages 611-625, November.
    23. Paul Krugman & Anthony J. Venables, 1995. "Globalization and the Inequality of Nations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(4), pages 857-880.
    24. James Markusen, 2005. "Modeling the Offshoring of White-Collar Services: From Comparative Advantage to the New Theories of Trade and FDI," NBER Working Papers 11827, National Bureau of Economic Research, Inc.
    25. Feenstra, Robert C. (ed.), 2000. "The Impact of International Trade on Wages," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226239637, December.
    26. Raghbendra Jha (ed.), 2008. "The Indian Economy Sixty Years After Independence," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-22833-7, February.
    27. Baldwin, Richard & Robert-Nicoud, Frédéric, 2014. "Trade-in-goods and trade-in-tasks: An integrating framework," Journal of International Economics, Elsevier, vol. 92(1), pages 51-62.
    28. repec:fth:iniesr:430 is not listed on IDEAS
    29. Jörn Kleinert, 2003. "Growing Trade in Intermediate Goods: Outsourcing, Global Sourcing, or Increasing Importance of MNE Networks?," Review of International Economics, Wiley Blackwell, vol. 11(3), pages 464-482, August.
    30. Judith M. Dean & K. C. Fung & Zhi Wang, 2011. "Measuring Vertical Specialization: The Case of China," Review of International Economics, Wiley Blackwell, vol. 19(4), pages 609-625, September.
    31. Poonam Gupta & Rana Hasan & Utsav Kumar, "undated". "What Constrains Indian Manufacturing?," Indian Council for Research on International Economic Relations, New Delhi Working Papers 211, Indian Council for Research on International Economic Relations, New Delhi, India.
    32. Dr. Mitsuyo ANDO & Dr. Fukunari Kimura, 2009. "Fragmentation in East Asia: Further Evidence," Working Papers DP-2009-20, Economic Research Institute for ASEAN and East Asia (ERIA).
    33. repec:hhs:iuiwop:430 is not listed on IDEAS
    34. Prema-chandra Athukorala & Jayant Menon, 2010. "Global Production Sharing, Trade Patterns and Determinants of Trade Flows," Departmental Working Papers 2010-06, The Australian National University, Arndt-Corden Department of Economics.
    35. Prema-Chandra Athukorala, 2008. "China's integration into global production networks and its implications for export-led growth strategy in other countries in the region," Departmental Working Papers 2008-04, The Australian National University, Arndt-Corden Department of Economics.
    36. Prema–Chandra Athukorala & Jayant Menon, 2010. "Global Production Sharing, Trade Patterns, and Determinants of Trade Flows in East Asia," Working Papers on Regional Economic Integration 41, Asian Development Bank.
    37. World Bank, 2011. "World Development Indicators 2011," World Bank Publications - Books, The World Bank Group, number 2315.
    38. Jun Ishii & Kei-Mu Yi, 1997. "The growth of world trade," Research Paper 9718, Federal Reserve Bank of New York.
    39. Richard E. Baldwin, 2008. "Managing The Noodle Bowl: The Fragility Of East Asian Regionalism," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 53(03), pages 449-478.
    40. Marius Brülhart, 1994. "Marginal Intra-Industry Trade: Measurement and Relevance," Economics Technical Papers 942, Trinity College Dublin, Department of Economics.
    41. 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.
    42. Prema-Chandra Athukorala, 2008. "Export Performance in the Reform Era: Has India Regained the Lost Ground?," Palgrave Macmillan Books, in: Raghbendra Jha (ed.), The Indian Economy Sixty Years After Independence, chapter 6, pages 95-115, Palgrave Macmillan.
    43. 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.
    44. Abraham, Katharine G & Taylor, Susan K, 1996. "Firms' Use of Outside Contractors: Theory and Evidence," Journal of Labor Economics, University of Chicago Press, vol. 14(3), pages 394-424, July.
    45. C. Veeramani, 2009. "Trade barriers, multinational involvement and intra-industry trade: panel data evidence from India," Applied Economics, Taylor & Francis Journals, vol. 41(20), pages 2541-2553.
    46. Lee Branstetter & C. Fritz Foley, 2010. "Facts and Fallacies about US FDI in China," NBER Chapters, in: China's Growing Role in World Trade, pages 513-539, National Bureau of Economic Research, Inc.
    47. Hackett, Steven C. & Srinivasan, Krishna, 1998. "Do supplier switching costs differ across Japanese and US multinational firms?," Japan and the World Economy, Elsevier, vol. 10(1), pages 13-32, January.
    48. K, S Chalapati Rao & Dhar, Biswajit, 2011. "India's FDI Inflows: Trends and Concepts," MPRA Paper 29153, University Library of Munich, Germany.
    49. Daisuke Hiratsuka & Yoko Uchida (ed.), 2010. "Input Trade and Production Networks in East Asia," Books, Edward Elgar Publishing, number 13909.
    50. Helleiner, Gerald K, 1973. "Manufactured Exports from Less-Developed Countries and Multinational Firms," Economic Journal, Royal Economic Society, vol. 83(329), pages 21-47, March.
    51. Wei, Wenhui, 2005. "China and India: Any difference in their FDI performances?," Journal of Asian Economics, Elsevier, vol. 16(4), pages 719-736, August.
    52. Takatoshi Ito & Andrew K. Rose, 2005. "International Trade in East Asia," NBER Books, National Bureau of Economic Research, Inc, number ito_05-1, October.
    53. Ramkishen Rajan, 1996. "Measures of intra-industry trade reconsidered with reference to Singapore’s bilateral trade with Japan and the United States," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 132(2), pages 378-389, September.
    54. Ito, Takatoshi & Rose, Andrew K. (ed.), 2005. "International Trade in East Asia," National Bureau of Economic Research Books, University of Chicago Press, number 9780226378961, December.
    55. Fukunari KIMURA, 2006. "International Production and Distribution Networks in East Asia: Eighteen Facts, Mechanics, and Policy Implications," Asian Economic Policy Review, Japan Center for Economic Research, vol. 1(2), pages 326-344, December.
    56. Barry Eichengreen & Poonam Gupta, 2010. "The Service Sector as India’s Road to Economic Growth?," Development Economics Working Papers 23030, East Asian Bureau of Economic Research.
    57. Manoj Pant, 1993. "Export performance, Transnational Corporations and the Manufacturing Sector: A Case Study of India," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 28(1), pages 41-54, January.
    58. Biswa N Bhattacharyay, 2009. "Restoring the Asian Silk Route: Toward an Integrated Asia," Working Papers id:2165, eSocialSciences.
    59. World Bank, 2004. "World Development Indicators 2004," World Bank Publications - Books, The World Bank Group, number 13890.
    60. Dunning, John H. & Kim, Zu Kweon & Lee, Chul-In, 2007. "Restructuring the regional distribution of FDI: The case of Japanese and US FDI," Japan and the World Economy, Elsevier, vol. 19(1), pages 26-47, January.
    61. S. Narayan, 2009. "India," Chapters, in: Peter Draper & Philip Alves & Razeen Sally (ed.), The Political Economy of Trade Reform in Emerging Markets, chapter 7, Edward Elgar Publishing.
    62. Montek S. Ahluwalia, 2002. "Economic Reforms in India Since 1991: Has Gradualism Worked?," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 67-88, Summer.
    63. Giorgio Barba Navaretti & Anthony J. Venables, 2006. "Multinational Firms in the World Economy," Economics Books, Princeton University Press, edition 1, volume 1, number 7832.
    64. Biswajit Nag & Debdeep De, 2011. "Rules of origin and development of regional production network in Asia: case studies of selected industries," Working Papers 10111, Asia-Pacific Research and Training Network on Trade (ARTNeT), an initiative of UNESCAP and IDRC, Canada..
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sakshi Aggarwal & Debashis Chakraborty, 2020. "Is there any relationship between Marginal Intra-Industry Trade and Employment Change? Evidence from Indian Industries," Working Papers 2044, Indian Institute of Foreign Trade.
    2. Neha Gupta, 2016. "Domestic Value-added Growth is Vital," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 17(2), pages 271-294, September.
    3. Eckhardt, Jappe & Serrano, Omar, 2014. "Economic Integration and Rivalry in Asia: Comparing Regional Trade Strategies of China and India," Papers 762, World Trade Institute.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Witada Anukoonwattaka, 2011. "Driving forces of Asian international production networks: A brief history and theoretical perspectives," STUDIES IN TRADE AND INVESTMENT, in: Witada Anukoonwattaka & Mia Mikic (ed.), India: A New Player in Asian Production Networks?, Studies in Trade and Investment 75, chapter 1, pages 7-22, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    2. Rahul Sen & Sadhana Srivastava, 2011. "Integrating into Asia’s international production networks: Challenges and prospects for India," STUDIES IN TRADE AND INVESTMENT, in: Witada Anukoonwattaka & Mia Mikic (ed.), India: A New Player in Asian Production Networks?, Studies in Trade and Investment 75, chapter 4, pages 78-119, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    3. Witada Anukoonwattaka, 2011. "Comparative overview of economic profiles and roles of China and India in Asian international production networks," STUDIES IN TRADE AND INVESTMENT, in: Witada Anukoonwattaka & Mia Mikic (ed.), India: A New Player in Asian Production Networks?, Studies in Trade and Investment 75, chapter 2, pages 23-53, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    4. Rahul Sen & Sadhana Srivastava, 2012. "Asia' s international production networks: Will India be the next assembly centre?," Working Papers 11812, Asia-Pacific Research and Training Network on Trade (ARTNeT), an initiative of UNESCAP and IDRC, Canada..
    5. Nobuaki Yamashita, 2012. "Can India become an export platform for global operations of Japanese and American multinational corporations affiliates?," Working Papers 11112, Asia-Pacific Research and Training Network on Trade (ARTNeT), an initiative of UNESCAP and IDRC, Canada..
    6. João Amador & Sónia Cabral, 2014. "Global Value Chains: Surveying Drivers, Measures and Impacts," Working Papers w201403, Banco de Portugal, Economics and Research Department.
    7. Fukunari Kimura & Ayako Obashi, 2016. "Production Networks in East Asia: What We Know So Far," ADB Institute Series on Development Economics, in: Ganeshan Wignaraja (ed.), Production Networks and Enterprises in East Asia, edition 1, chapter 0, pages 33-64, Springer.
    8. Nobuaki Yamashita, 2010. "International Fragmentation of Production," Books, Edward Elgar Publishing, number 13615.
    9. Amador, João & Cabral, Sónia, 2008. "International fragmentation of production in the Portuguese economy: What do different measures tell us?," MPRA Paper 9783, University Library of Munich, Germany.
    10. Bandara, Yapa M.W.Y. & Sharma, Kishor & Chakrabarty, Debajyoti, 2019. "Trends, patterns and determinants of production sharing in Australian manufacturing," Economic Analysis and Policy, Elsevier, vol. 62(C), pages 1-11.
    11. Baldwin, Richard & Venables, Anthony J., 2013. "Spiders and snakes: Offshoring and agglomeration in the global economy," Journal of International Economics, Elsevier, vol. 90(2), pages 245-254.
    12. Amador, João & Cabral, Sónia, 2009. "Vertical specialization across the world: A relative measure," The North American Journal of Economics and Finance, Elsevier, vol. 20(3), pages 267-280, December.
    13. Amador, João & Cabral, Sónia, 2014. "Global value chains: surveying drivers and measures," Working Paper Series 1739, European Central Bank.
    14. Mia Mikic, 2011. "Are the India's trade agreements deep enough to support production networks?," STUDIES IN TRADE AND INVESTMENT, in: Witada Anukoonwattaka & Mia Mikic (ed.), India: A New Player in Asian Production Networks?, Studies in Trade and Investment 75, chapter 5, pages 120-136, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    15. Richard Baldwin & Javier Lopez-Gonzalez, 2015. "Supply-chain Trade: A Portrait of Global Patterns and Several Testable Hypotheses," The World Economy, Wiley Blackwell, vol. 38(11), pages 1682-1721, November.
    16. Nenci, Silvia & Fusacchia, Ilaria & Giunta, Anna & Montalbano, Pierluigi & Pietrobelli, Carlo, . "Mapping global value chain participation and positioning in agriculture and food: stylised facts, empirical evidence and critical issues," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 11(2).
    17. Innwon Park & Soonchan Park, 2017. "Formation of interdependent regional trade agreements and production networks," The World Economy, Wiley Blackwell, vol. 40(10), pages 2032-2055, October.
    18. Baldwin, Richard & Okubo, Toshihiro, 2019. "GVC journeys: Industrialisation and deindustrialisation in the age of the second unbundling," Journal of the Japanese and International Economies, Elsevier, vol. 52(C), pages 53-67.
    19. Sadhana Srivastava & Rahul Sen, 2015. "Production fragmentation in trade of manufactured goods in India: prospects and challenges," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 22(1), pages 33-66, June.
    20. Prema‐chandra Athukorala & Shahbaz Nasir, 2012. "Global production sharing and South‐South trade," Indian Growth and Development Review, Emerald Group Publishing Limited, vol. 5(2), pages 173-202, September.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • F1 - International Economics - - Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:unt:ecchap:tipub2624_chap3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mia Mikic The email address of this maintainer does not seem to be valid anymore. Please ask Mia Mikic to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/escapth.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.