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Global Production Sharing, Trade Patterns and Industrialization in Southeast Asia

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  • Prema-chandra Athukorala
  • Archanun Kohpaiboon

Abstract

This paper examines the emerging trends and patterns of merchandise trade in Southeast Asia and their implications for growth and structural changes in domestic manufacturing, with emphasis on the on-going process of global production sharing. The analysis reveals that participation in global production networks (GPNs) has strengthened economic interdependence among the Southeast Asian countries, and between these countries and China and the other major economies in East Asia, but this has not lessoned the dependence of growth dynamism of these countries on the global economy. The operation of the regional cross-border production networks depends inexorably on trade in final goods with North America and the European Union. Reflecting differences in policy regimes and the overall business climate, the degree of integration within GPNs and the resultant impact on industrial upgrading varies notably among the countries in the region.

Suggested Citation

  • Prema-chandra Athukorala & Archanun Kohpaiboon, 2013. "Global Production Sharing, Trade Patterns and Industrialization in Southeast Asia," Departmental Working Papers 2013-18, The Australian National University, Arndt-Corden Department of Economics.
  • Handle: RePEc:pas:papers:2013-18
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    File URL: https://crawford.anu.edu.au/acde/publications/publish/papers/wp2013/wp_econ_2013_18.pdf
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    References listed on IDEAS

    as
    1. Chris Manning & Raden M. Purnagunawan, 2011. "Survey of recent developments," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 47(3), pages 303-332, December.
    2. Prema-chandra Athukorala & Tran Quang Tien, 2009. "Foreign Direct Investment in Industrial Transition: The Experience of Vietnam," Departmental Working Papers 2009-20, The Australian National University, Arndt-Corden Department of Economics.
    3. Prema-chandra Athukorala & Hal Hill, 2010. "Asian trade: long-term patterns and key policy issues," Asian-Pacific Economic Literature, Asia Pacific School of Economics and Government, The Australian National University, vol. 24(2), pages 52-82, November.
    4. Caves,Richard E., 2007. "Multinational Enterprise and Economic Analysis," Cambridge Books, Cambridge University Press, number 9780521677530, May.
    5. Prema-chandra Athukorala, 2011. "Growing with Global Production Sharing: The Tale of Penang Export Hub," Departmental Working Papers 2011-13, The Australian National University, Arndt-Corden Department of Economics.
    6. Prema-chandra Athukorala, 2009. "The Rise of China and East Asian Export Performance: Is the Crowding-Out Fear Warranted?," The World Economy, Wiley Blackwell, vol. 32(2), pages 234-266, February.
    7. Armida Alisjahbana & Chris Manning, 2002. "Survey of Recent Developments," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 38(3), pages 277-305.
    8. Prema-chandra Athukorala, 2006. "International Labour Migration in East Asia: trends, patterns and policy issues," Asian-Pacific Economic Literature, Asia Pacific School of Economics and Government, The Australian National University, vol. 20, pages 18-39, May.
    9. Caves,Richard E., 2007. "Multinational Enterprise and Economic Analysis," Cambridge Books, Cambridge University Press, number 9780521860130, May.
    10. Athukorala, Prema-chandra & Kohpaiboon, Archanun, 2009. "Intra-Regional Trade in East Asia: The Decoupling Fallacy, Crisis, and Policy Challenges," ADBI Working Papers 177, Asian Development Bank Institute.
    11. Prema-chandra Athukorala, 2011. "Production Networks and Trade Patterns in East Asia: Regionalization or Globalization?," Asian Economic Papers, MIT Press, vol. 10(1), pages 65-95, Winter/Sp.
    12. Prema-chandra Athukorala & Bambang Santosa, 1997. "Gains from Indonesian Export Growth: Do Linkages Matter?," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 33(2), pages 73-95.
    13. repec:taf:rjapxx:v:17:y:2012:i:3:p:446-463 is not listed on IDEAS
    14. Alice H. Amsden & Wan-wen Chu, 2003. "Beyond Late Development: Taiwan's Upgrading Policies," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011980, January.
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    Citations

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    Cited by:

    1. Prema-chandra Athukorala & Archanun Kophaiboon, 2013. "Trade and Investment Patterns in Asia: Implications for Multilateralizing Regionalism," Departmental Working Papers 2013-16, The Australian National University, Arndt-Corden Department of Economics.
    2. Tony Irawan & Paul J.J. Welfens, 2016. "ICT Dynamics and Regional Trade Bias in Asia: Theory and Empirical Aspects," EIIW Discussion paper disbei224, Universit├Ątsbibliothek Wuppertal, University Library.
    3. Jayant Menon, 2013. "Can FTAs Support the Growth or Spread of International Production Networks in Asia?," Departmental Working Papers 2013-06, The Australian National University, Arndt-Corden Department of Economics.

    More about this item

    Keywords

    global production sharing; global production networks; Southeast Asia; industrialization;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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