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Global Production Networks in Electronics and Intra-Asian Trade

  • Byron Ganges


    (University of Hawaii at Manoa)

  • Ari Van Assche


    (HEC MontreÌ al and LICOS, Department of International Business)

The growth of East Asia’s intra-regional trade is driven largely by increased component trade within global electronics production networks. Data on both electronics trade and production elucidate a pattern of specialization in which upper- and middle-income countries produce sophisticated components and lower-income countries assemble lower- value-added final goods. There is evidence of increasing sophistication within the electronics sector by the Newly Industrialized Economies and to a lesser extent by ASEAN countries. Despite the marked increase in intra-regional trade, developing East Asian countries remain heavily dependent on developed-country markets. When Western export demand rapidly contracted during the 2008-2009 economic crisis, these specialization patterns led the rapid diffusion of the business cycle shock throughout the East Asian region.

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Paper provided by University of Hawaii Economic Research Organization, University of Hawaii at Manoa in its series Working Papers with number 2010-04.

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Length: 34 pages
Date of creation: Mar 2010
Date of revision:
Handle: RePEc:hae:wpaper:2010-04
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