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Fragmentation in East Asia: Further Evidence

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  • Dr. Mitsuyo ANDO

    (Faculty of Business and Commerce, Keio University, Japan)

  • Dr. Fukunari Kimura

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

Abstract

This paper analyzes the spatial pattern of production/distribution networks in East Asia. Two issues are investigated. The one is how the formation of networks has changed the intra- and inter-regional trade pattern. We find that an explosive expansion of intra-regional trade in machinery parts and components, in particular among developing countries, contributes to the current dense networking. The other is how corporate firms effectively organize fragmentation in terms of geographical distance and disintegration. The micro data of Japanese firms indicate that long-distance transactions are mainly intra-firm while transactions in local markets are predominantly arm's-length (inter-firm), suggesting the formation of agglomeration.

Suggested Citation

  • 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).
    • Handle: RePEc:era:wpaper:dp-2009-20
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    References listed on IDEAS

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    1. 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.
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