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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.
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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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    Cited by:

    1. Liu, C.-L.E., 2012. "An investigation of relationship learning in cross-border buyer–supplier relationships: The role of trust," International Business Review, Elsevier, vol. 21(3), pages 311-327.
    2. Carl Bonham & Byron Gangnes & Ari Van Assche, 2007. "Fragmentation and East Asia's information technology trade," Applied Economics, Taylor & Francis Journals, vol. 39(2), pages 215-228.
    3. Fromhold-Eisebith Martina & Eisebith Günter, 2003. "Globale Krise – regionale Gewinner?," Zeitschrift für Wirtschaftsgeographie, De Gruyter, vol. 47(1), pages 82-96, October.
    4. Dieter Ernst, 2001. "The Internet's Effects on Global Production Networks: Challenges and Opportunities for Managing in Developing Asia," Economics Study Area Working Papers 33, East-West Center, Economics Study Area.
    5. Paolo Guerrieri & Filippo Vergara Caffarelli, 2012. "Trade Openness and International Fragmentation of Production in the European Union: The New Divide?," Review of International Economics, Wiley Blackwell, vol. 20(3), pages 535-551, August.
    6. Chao-Tung Wen & Jun-Ming Chen, 2014. "Taiwan: linkage-based Clusters of Innovation – the case of Taiwan’s IT industry," Chapters,in: Global Clusters of Innovation, chapter 9, pages 222-246 Edward Elgar Publishing.
    7. Imai, Ken'ichi & Shiu, Jingming, 2007. "A Divergent Path of Industrial Upgrading: Emergence and Evolution of the Mobile Handset Industry in China," IDE Discussion Papers 125, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    8. Dieter Ernst, 2000. "Placing the Networks on the Web: Challenges and Opportunities for Managing in Developing Asia," Economics Study Area Working Papers 05, East-West Center, Economics Study Area.
    9. repec:spr:manint:v:54:y:2014:i:2:d:10.1007_s11575-013-0195-y is not listed on IDEAS
    10. Suder, Gabriele & Liesch, Peter W. & Inomata, Satoshi & Mihailova, Irina & Meng, Bo, 2015. "The evolving geography of production hubs and regional value chains across East Asia: Trade in value-added," Journal of World Business, Elsevier, vol. 50(3), pages 404-416.
    11. Kuwamori, Hiroshi & Okamoto, Nobuhiro, 2007. "Industrial Networks between China and the Countries of the Asia-Pacific Region," IDE Discussion Papers 110, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    12. Banji O. Oyeyinka, 2012. "Institutional capacity and policy for latecomer technology development," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 5(1/2), pages 83-110.

    More about this item

    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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