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The Role of the People’s Republic of China in International Fragmentation and Production Networks: An Empirical Investigation

Author

Listed:
  • Lee, Hyun-Hoon

    () (Department of International Trade)

  • Park, Donghyun

    () (Asian Development Bank)

  • Wang, Jing

    () (Department of International Trade)

Abstract

Despite the central role of the People’s Republic of China (PRC) in global parts and components trade, most previous studies on the PRC’s parts and components trade have been limited to a particular trade partner or some specific industries. The central objective of this paper is to provide a more complete description of the PRC’s parts and components trade. To do so, we systematically separate total trade flows into parts and components and final goods, and give a description of the pattern of parts and components trade for the period 1992–2009. We then estimate a gravity model to examine the determinants of the PRC’s trade in parts and components. We find that the share of parts and components trade in the PRC’s total trade has grown rapidly.

Suggested Citation

  • Lee, Hyun-Hoon & Park, Donghyun & Wang, Jing, 2011. "The Role of the People’s Republic of China in International Fragmentation and Production Networks: An Empirical Investigation," Working Papers on Regional Economic Integration 87, Asian Development Bank.
    • Handle: RePEc:ris:adbrei:0087
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    File URL: http://aric.adb.org/pdf/workingpaper/WP87_Lee_Park_Wang_The_Role_of_the_PRC.pdf
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    References listed on IDEAS

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    1. Yap, Josef T. & Majuca, Ruperto P. & Park, Cyn-Young, 2010. "The 2008 Financial Crisis and Potential Output in Asia: Impact and Policy Implications," Discussion Papers DP 2010-11, Philippine Institute for Development Studies.
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    Cited by:

    1. 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.
    2. Lee, Hyun-Hoon & Park, Donghyun & Wang, Jing, 2012. "Different Types of Firms, Products, and Directions of Trade: The Case of the People’s Republic of China," Working Papers on Regional Economic Integration 101, Asian Development Bank.
    3. Yilmaz Akyüz, 2012. "The Staggering Rise of the South?," Working Papers 2012/3, Turkish Economic Association.

    More about this item

    Keywords

    People’s Republic of China; PRC; parts and components trade; fragmentation; production network;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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