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Global Production Networks in Electronics and Intra-Asian Trade

  • Byron Gangnes

    ()

    (Department of Economics, University of Hawaii at Manoa)

  • Ari Van Assche

    ()

    (HEC Montreal and LICOS)

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 lowervalue- 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 iffusion of the business cycle shock throughout the East Asian region.

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File URL: http://www.economics.hawaii.edu/research/workingpapers/WP_10-4.pdf
File Function: First version, 2010
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Paper provided by University of Hawaii at Manoa, Department of Economics in its series Working Papers with number 201004.

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Length: 35 pages
Date of creation: 10 Mar 2010
Date of revision:
Handle: RePEc:hai:wpaper:201004
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