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Production fragmentation, upstreamness, and value-added : evidence from factory Asia 1990-2005

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  • Ito, Tadashi
  • Vezina, Pierre-Louis

Abstract

We exploit the recent release of the 2005 Asian Input-Output Matrix to dress a picture of the geographic fragmentation of value added in Factory Asia from 1990 to 2005. We document 3 stylized facts. The first is that the average share of foreign value added embedded in production rose by about 7 percentage points between 1990 and 2005, from 9% to 16%. The second is that, contrary to popular belief, China's production embeds a smaller share of foreign value added than other Factory Asia countries'. Between 1990 and 2005 among Factory Asia countries China grew most after Japan as a source of value added to other countries' production. Third, country-industries at the upstream and downstream extremities of the supply chain embed a smaller share of foreign value added than those with intermediate levels of upstreamness.

Suggested Citation

  • Ito, Tadashi & Vezina, Pierre-Louis, 2015. "Production fragmentation, upstreamness, and value-added : evidence from factory Asia 1990-2005," IDE Discussion Papers 535, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  • Handle: RePEc:jet:dpaper:dpaper535
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    References listed on IDEAS

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    1. Pol Antràs & Davin Chor, 2013. "Organizing the Global Value Chain," Econometrica, Econometric Society, vol. 81(6), pages 2127-2204, November.
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    3. Pol Antras & Davin Chor & Thibault Fally & Russell Hillberry, 2012. "Measuring the Upstreamness of Production and Trade Flows," American Economic Review, American Economic Association, vol. 102(3), pages 412-416, May.
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    Cited by:

    1. Theresa M. Greaney & Kozo Kiyota, 2020. "The gravity model and trade in intermediate inputs," The World Economy, Wiley Blackwell, vol. 43(8), pages 2034-2049, August.
    2. João Amador & Sónia Cabral & Rossana Mastrandrea & Franco Ruzzenenti, 2018. "Who’s Who in Global Value Chains? A Weighted Network Approach," Open Economies Review, Springer, vol. 29(5), pages 1039-1059, November.
    3. Ketan Reddy & Subash Sasidharan, 2021. "A Portrait of Global Value Chain Linkages of Indian Manufacturing," Journal of Asian Economic Integration, , vol. 3(2), pages 235-250, September.
    4. Sasahara, Akira, 2019. "Explaining the employment effect of exports: Value-added content matters," Journal of the Japanese and International Economies, Elsevier, vol. 52(C), pages 1-21.

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    More about this item

    Keywords

    Asia; China; International economic relations; International trade; Industry; Factory Asia; Supply chains; Upstreamness;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration

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