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Global Production Sharing and US-China Trade Relations

Author

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  • Prema-chandra Athukorala

    ()

  • Nobuaki Yamashita

    ()

Abstract

This paper examines US-China trade relations, focusing on the ongoing process of global production sharing global production sharing—the breakup of the production processes into geographically separated stag—and the resulting trade complementarities between the two countries in world manufacturing trade. The results suggest that the USChina trade imbalance is basically a structural phenomenon resulting from the pivotal role played by China as the final assembly centre in East-Asia centered global production networks. Given the current state of China’s factor market conditions, US-China trade patterns are unlikely to change dramatically in the short to medium run.

Suggested Citation

  • Prema-chandra Athukorala & Nobuaki Yamashita, 2008. "Global Production Sharing and US-China Trade Relations," Departmental Working Papers 2008-22, The Australian National University, Arndt-Corden Department of Economics.
  • Handle: RePEc:pas:papers:2008-22
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    File URL: https://crawford.anu.edu.au/acde/publications/publish/papers/wp2008/wp_econ_2008_22.pdf
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    Cited by:

    1. Rebecca Tomasik, 2013. "Time zone-related continuity and synchronization effects on bilateral trade flows," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 149(2), pages 321-342, June.
    2. Lee, Hyun-Hoon & Park, Donghyun & Wang, Jing, 2013. "Different types of firms, different types of products, and their dynamics: An anatomy of China's imports," China Economic Review, Elsevier, vol. 25(C), pages 62-77.
    3. Dean, Judith M. & Lovely, Mary E. & Mora, Jesse, 2009. "Decomposing China-Japan-U.S. trade: Vertical specialization, ownership, and organizational form," Journal of Asian Economics, Elsevier, vol. 20(6), pages 596-610, November.

    More about this item

    Keywords

    China; global production sharing; U.S.-China trade imbalance;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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