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Industrial deepening in East Asia

Author

Listed:
  • Kuroiwa, Ikuo

Abstract

Structural transformations are an indispensable element of sustained economic growth. Within the context of East Asia, this study focuses on industrial deepening, which refers to the formation of local linkages and the creation of a robust local supplier base. To investigate the progress of industrial deepening, this study introduces two kinds of domestic procurement measures in addition to the previously developed local content measures. Specifically, two kinds of vertical specialization measures are used to demonstrate the degree to which respective East Asian economies are specialized within their vertical production networks. The results clearly show that the advancement of production networks is likely to reduce domestic procurement ratios, even if local supplier bases are strengthened in the respective countries. Moreover, the trend of domestic procurement ratios differs depending on the characteristics of particular industries and the industrial policies adopted by individual countries.

Suggested Citation

  • Kuroiwa, Ikuo, 2015. "Industrial deepening in East Asia," IDE Discussion Papers 489, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper489
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    File URL: https://ir.ide.go.jp/record/37687/files/IDP000489_001.pdf
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    References listed on IDEAS

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    2. Tham Siew Yean & Loke Wai Heng, 2011. "Industrial Deepening in Malaysia: Policy Lessons for Developing Countries," Asian Development Review, Asian Development Bank, vol. 28(2), pages 88-109.
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    Cited by:

    1. Gokan, Toshitaka & Kuroiwa, Ikuo & Laksanapanyakul, Nuttawut & Ueki, Yasushi, 2016. "Spatial structures of manufacturing clusters in Cambodia, Lao People's Democratic Republic, and Thailand," IDE Discussion Papers 617, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    2. Marcato, Marilia Bassetti & Dweck, Esther & Montanha, Rafael, 2022. "The densification of Chinese production chains in the context of vertically fragmented production," Structural Change and Economic Dynamics, Elsevier, vol. 60(C), pages 75-89.
    3. Ikuo Kuroiwa, 2017. "The Automotive Value Chain in Thailand," Working Papers DP-2016-33, Economic Research Institute for ASEAN and East Asia (ERIA).
    4. Toshitaka GOKAN & Ikuo KUROIWA & Nuttawut LAKSANAPANYAKUL & Yasushi UEKI, 2015. "Spatial Patterns of Manufacturing Agglomeration in Cambodia, Lao People’s Democratic Republic, and Thailand," Working Papers DP-2015-68, Economic Research Institute for ASEAN and East Asia (ERIA).

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    Keywords

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    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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