Impact of the ASEAN Economic Community on ASEAN Production Networks
Empirical evidence suggests that the emergence of international production networks in East Asia results from market-driven forces such as vertical specialization and higher production costs in the home countries and institutional-led reasons such as free trade agreements. This paper examines two industries—autos and auto parts, and hard disk drives (HDDs)—to understand international production networks. The study examines the structure of vertical intra-industry trade among East Asian countries, especially members of the Association of Southeast Asian Nations, depicts international production sharing in the selected industries, namely HDD, and automobiles and automotive parts, in the region. The study also points out the importance of the People’s Republic of China and Thailand as assembly bases. It concludes that investment promotion policies contributed more to the emergence of international production networks than free trade agreements.
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| Length: | 46 pages |
| Date of creation: | 22 Feb 2013 |
| Date of revision: | |
| Handle: | RePEc:ris:adbiwp:0409 |
| Contact details of provider: | Postal: Kasumigaseki Building 8F, 3-2-5, Kasumigaseki, Chiyoda-ku, Tokyo 100-6008, Japan Phone: (81-3)3593-5500 Fax: (81-3) 3593-5571 Web page: http://www.adbi.org/ Email: More information through EDIRC
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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Thorbecke, Willem & Salike, Nimesh, 2011.
"Understanding Foreign Direct Investment in East Asia,"
ADBI Working Papers
290, Asian Development Bank Institute.
- Willem Thorbecke & Nimesh Salike, 2011. "Understanding Foreign Direct Investment in East Asia," Trade Working Papers 23246, East Asian Bureau of Economic Research.
- Willem Thorbecke & Nimesh Salike, 2011. "Understanding Foreign Direct Investment in East Asia," Microeconomics Working Papers 23246, East Asian Bureau of Economic Research.
- Lionel Fontagné & Michaël Freudenberg, 1997. "Intra-Industry Trade: Methodological Issues Reconsidered," Working Papers 1997-01, CEPII research center.
- Athukorala, Prema-chandra, 2010.
"Production Networks and Trade Patterns in East Asia: Regionalization or Globalization?,"
Working Papers on Regional Economic Integration
56, Asian Development Bank.
- 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, January.
- Daisuke Hiratsuka, 2011.
"Production Networks in Asia : A Case Study from the Hard Disk Drive Industry,"
Microeconomics Working Papers
23235, East Asian Bureau of Economic Research.
- Daisuke Hiratsuka, 2011. "Production Networks in Asia : A Case Study from the Hard Disk Drive Industry," Trade Working Papers 23235, East Asian Bureau of Economic Research.
- Hiratsuka, Daisuke, 2011. "Production Networks in Asia: A Case Study from the Hard Disk Drive Industry," ADBI Working Papers 301, Asian Development Bank Institute.
- Nathalie AMINIAN & K. C. FUNG & IIZAKA Hitomi, 2007. "Foreign Direct Investment, Intra-Regional Trade and Production Sharing in East Asia," Discussion papers 07064, Research Institute of Economy, Trade and Industry (RIETI).
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