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International Production Networks and Changing Trade Patterns in East Asia: The Case of the Electronics Industry

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  • Ernst, Dieter
  • Guerrieri, Paolo

Abstract

The concept of an “international production network “ captures the spread of broader systems of international production which cut across different stages of the value chain but which may, or may not, involve ownership of equity stakes. The concept allows us to analyse the globalization strategies of any particular firm with regard to the following four questions: Where does the firm locate the various stages of the value chain? To what degree does a firm rely on “outsourcing”, and hence what is the relationship between that and the firm's internal production activities? To what degree is control over transactions exercised in a centralized or in a decentralized manner? How do the different elements of these networks hang together? The ideas are applied to the trade links in electronics between firms located in the USA or Japan and countries of East Asia.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Ernst, Dieter & Guerrieri, Paolo, 1998. "International Production Networks and Changing Trade Patterns in East Asia: The Case of the Electronics Industry," UCAIS Berkeley Roundtable on the International Economy, Working Paper Series qt3f55c124, UCAIS Berkeley Roundtable on the International Economy, UC Berkeley.
    • Handle: RePEc:cdl:ucbrie:qt3f55c124
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    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment

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