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Global Production Sharing and Asian Trade Patterns: Implications for the Regional Comprehensive Economic Partnership (RCEP)

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  • Prema-chandra Athukorala

Abstract

This paper documents and analyzes emerging trade patterns in Asia, with special reference to the implications of global production sharing with a view to informing the policy debate on forming the Regional Comprehensive Economic Partnership (RCEP). The analysis reveals that the degree of dependence of RCEP countries on this new form of global division of labour is much larger compared to Europe and North America. Global production sharing has certainly strengthened economic interdependence among the countries in the region, but the dynamism of the regional cross-border production networks depends inexorably on global, rather than regional, trade in final goods. The findings of this paper make a strong case for a global, rather than a regional, approach to trade and investment policy making.

Suggested Citation

  • Prema-chandra Athukorala, 2014. "Global Production Sharing and Asian Trade Patterns: Implications for the Regional Comprehensive Economic Partnership (RCEP)," Departmental Working Papers 2014-16, The Australian National University, Arndt-Corden Department of Economics.
    • Handle: RePEc:pas:papers:2014-16
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    References listed on IDEAS

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    1. 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.
    2. 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.
    3. Kei-Mu Yi, 2003. "Can Vertical Specialization Explain the Growth of World Trade?," Journal of Political Economy, University of Chicago Press, vol. 111(1), pages 52-102, February.
    4. Prema-chandra Athukorala & Archanun Kohpaiboon, 2009. "Intra-Regional Trade in East Asia: The Decoupling Fallacy, Crisis, and Policy Challenges," ADBI Working Papers 177, Asian Development Bank Institute.
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    Cited by:

    1. Yelena Andreyeva & Andrei Maltsev & Mikhail Maslennikov & Artyom Ratner, 2018. "Global Economic Relations of a Region in the Investigations of the Institute of Economics of the Ural Branch of the Russian Academy of Sciences," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(2), pages 612-622.
    2. Willem Thorbecke, 2015. "Enjoying the Fruits of Their Labor: Redirecting Exports to Asian Consumers," Asian Development Review, MIT Press, vol. 32(2), pages 95-114, September.
    3. Douglas H. Brooks, 2016. "Connectivity in East Asia," Asian Economic Policy Review, Japan Center for Economic Research, vol. 11(2), pages 176-194, July.
    4. Bishwanath Goldar & Deb Kusum Das & Pilu Chandra Das & Neha Gupta, 2020. "Domestic Versus Imported Contents in Exports: The Case of India’s Merchandise Trade," Journal of South Asian Development, , vol. 15(1), pages 62-96, April.

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    Keywords

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    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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