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The Spatial Structure of Production/Distribution Networks and Its Implication for Technology Transfers and Spillovers

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  • Fukunari KIMURA

    (Faculty of Economics, Keio University, Japan Economic Research Institute for ASEAN and East Asia, Indonesia)

Abstract

This paper argues that a variety of firm specificity supported by sophisticated inter-firm relationships is essential for understanding the mechanics and spatial structure of international production/distribution networks in East Asia. By mapping the two-dimensional fragmentation framework (Kimura and Ando (2005)) into geographical space, the paper proposes the concept of four layers of transactions in production/distribution networks: (i) local, (ii) sub-regional, (iii) regional, and (iv) the world. The concept effectively bridges geographical extensions of production/ distribution networks and the nature of transactions in terms of intra-firm vs. arm's-length as well as technological/managerial conditions. In addition, the paper discusses the implications of such geographical structure of production/distribution networks for technology transfers/spillovers from multinationals to local firms and claims its importance in new development strategies.

Suggested Citation

  • Fukunari KIMURA, 2009. "The Spatial Structure of Production/Distribution Networks and Its Implication for Technology Transfers and Spillovers," Working Papers d005, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:wpaper:d005
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    Cited by:

    1. Archanun Kohpaiboon, 2011. "Trade policy and international production networks: A company-level case study of the Thai hard disk drive industry," STUDIES IN TRADE AND INVESTMENT, in: Mia Mikic & Mochamad Pasha (ed.), Fighting Irrelevance: The Role of Regional Trade Agreements in International Production Networks in Asia, chapter 7, pages 153-177, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    2. Daisuke Hiratsuka, 2011. "Production Networks in Asia : A Case Study from the Hard Disk Drive Industry," Microeconomics Working Papers 23235, East Asian Bureau of Economic Research.
    3. Hyun-Hoon Lee & Donghyun Park & Kwanho Shin, 2017. "Effects of China's Structural Change on the Exports of East Asian Economies," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 25(3), pages 1-30, May.
    4. Fukunari Kimura, 2009. "The Nature and Characteristics of Production Networks in East Asia: Evidences from Micro/Panel Data Analyses," Global COE Hi-Stat Discussion Paper Series gd09-093, Institute of Economic Research, Hitotsubashi University.
    5. Jung Hur & Hyun-Hoon Lee, 2017. "Apec Has Indeed Created Intra-Regional Trade: A Systematic Empirical Analysis," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 62(05), pages 1077-1095, December.
    6. Lee, Hyun-Hoon & Park, Donghyun & Wang, Jing, 2013. "Different types of firms, different types of products, and their dynamics: An anatomy of China's imports," China Economic Review, Elsevier, vol. 25(C), pages 62-77.
    7. Hyun-Hoon Lee & Donghyun Park & Jing Wang, 2012. "Different Types of Firms, Products, and Directions of Trade: The Case of the People’s Republic of China," Working Papers on Regional Economic Integration 101, Asian Development Bank.

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