IDEAS home Printed from https://ideas.repec.org/h/wsi/wschap/9789813141094_0007.html

Decomposing China-Japan-U.S. Trade: Vertical specialization, ownership, and organizational form

In: International Economic Integration and Domestic Performance

Author

Listed:
  • Judith M. Dean
  • Mary E. Lovely
  • Jesse Mora

Abstract

We use the US International Trade Commission’s uniquely detailed 1995-2007 Chinese Customs data to better understand the pattern of trade between China and its two largest trading partners, Japan and the United States. Our review finds that only a small share of these flows can be characterized as arm’s length, one-way trade in final goods. Instead, we find extensive two-way trade, deep vertical specialization, concentration of trade in computer and communication devices, and a prominent role for foreign-invested enterprises. While these characteristics define both bilateral relationships, important differences between the two pairs do emerge, suggesting that trade costs influence the method by which multinationals choose to integrate their production with China. Consequently, we argue that dialogue on East Asian trade liberalization should include the possibility of significant production gains for the US from its inclusion in any regional agreements.

Suggested Citation

  • Judith M. Dean & Mary E. Lovely & Jesse Mora, 2017. "Decomposing China-Japan-U.S. Trade: Vertical specialization, ownership, and organizational form," World Scientific Book Chapters, in: Mary E Lovely (ed.), International Economic Integration and Domestic Performance, chapter 7, pages 119-132, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789813141094_0007
    as

    Download full text from publisher

    File URL: https://www.worldscientific.com/doi/pdf/10.1142/9789813141094_0007
    Download Restriction: Ebook Access is available upon purchase.
    File URL: https://www.worldscientific.com/doi/abs/10.1142/9789813141094_0007
    Download Restriction: Ebook Access is available upon purchase.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or

    for a different version of it.

    Other versions of this item:

    Citations

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


    Cited by:

    1. is not listed on IDEAS
    2. Zhou, Jing & Latorre, María C., 2015. "FDI in China and global production networks: Assessing the role of and impact on big world players (East Asia, Japan, EU28 and U.S.)," MPRA Paper 62297, University Library of Munich, Germany.
    3. Liu, Bin & Wang, Dedong & Xu, Youquan & Liu, Chunlu & Luther, Mark, 2018. "Vertical specialisation measurement of energy embodied in international trade of the construction industry," Energy, Elsevier, vol. 165(PB), pages 689-700.
    4. María C. Latorre & Nobuhiro Hosoe, 2014. "How much can foreign multinationals affect the Chinese economy? A dynamic general equilibrium analysis of Japanese FDI," GRIPS Discussion Papers 14-16, National Graduate Institute for Policy Studies.
    5. Singh, Nirvikar & Mora, Jesse, 2012. "Trade Productivity Upgrading, Trade Fragmentation, and FDI in Manufacturing: The Asian Development Experience," Santa Cruz Department of Economics, Working Paper Series qt1d62r9n5, Department of Economics, UC Santa Cruz.
    6. Nobuaki Hamaguchi & Silvio Miyazaki & Leonardo Correia, 2014. "State Space Application to Recent Automobile Sector Triangle Trade between Japan and Latin America," Discussion Paper Series DP2014-05, Research Institute for Economics & Business Administration, Kobe University.
    7. Jarko Fidrmuc & Iikka Korhonen & Ivana Bátorová, 2013. "China in the World Economy: Dynamic Correlation Analysis of Business Cycles," CESifo Economic Studies, CESifo Group, vol. 59(2), pages 392-411, June.
    8. Sun, Ya-Fang & Yu, Shiwei & Zhang, Yue-Jun & Su, Bin, 2023. "How do imports change the energy consumption of China? An analysis of its role in intermediate inputs and final demands," Energy, Elsevier, vol. 270(C).
    9. Chad P. Bown & Rachel McCulloch, 2012. "Antidumping and Market Competition: Implications for Emerging Economies," Working Papers 50, Brandeis University, Department of Economics and International Business School.
    10. Latorre, María C. & Hosoe, Nobuhiro, 2016. "The role of Japanese FDI in China," Journal of Policy Modeling, Elsevier, vol. 38(2), pages 226-241.
    11. Robert Koopman & William Powers & Zhi Wang & Shang-Jin Wei, 2010. "Give Credit Where Credit Is Due: Tracing Value Added in Global Production Chains," NBER Working Papers 16426, National Bureau of Economic Research, Inc.
    12. Huang, Yanghua & Salike, Nimesh & Zhong, Feiteng, 2017. "Policy effect on structural change: A case of Chinese intermediate goods trade," China Economic Review, Elsevier, vol. 44(C), pages 30-47.
    13. Singh, Nirvikar & Mora, Jesse & Carolan, Terrie, 2012. "Trade Dynamics in the East Asian Miracle: A Time Series Analysis of U.S.-East Asia Commodity Trade, 1962-1992," Santa Cruz Department of Economics, Working Paper Series qt0fm1r83r, Department of Economics, UC Santa Cruz.
    14. Wen-Jie Xie & Na Wei & Wei-Xing Zhou, 2020. "Evolving efficiency and robustness of global oil trade networks," Papers 2004.05325, arXiv.org.
    15. Latorre, María C. & Yonezawa, Hidemichi & Zhou, Jing, 2018. "A general equilibrium analysis of FDI growth in Chinese services sectors," China Economic Review, Elsevier, vol. 47(C), pages 172-188.
    16. Bown, Chad P. & McCulloch, Rachel, 2009. "U.S.-Japan and U.S.-China trade conflict: Export growth, reciprocity, and the international trading system," Journal of Asian Economics, Elsevier, vol. 20(6), pages 669-687, November.
    17. Fukumoto, Mayumi, 2012. "Estimation of China's disaggregate import demand functions," China Economic Review, Elsevier, vol. 23(2), pages 434-444.
    18. Christopher Edmonds & Yao Li, 2010. "A New Perspective On China Trade Growth: Application Of A New Index Of Bilateral Trade Intensity," Working Papers 201025, University of Hawaii at Manoa, Department of Economics.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration

    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:wsi:wschap:9789813141094_0007. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscientific.com/page/worldscibooks .

    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.