Trade Integration in East Asia : The Role of China and Production Networks

Production networks have been at the heart of the recent growth in trade among East Asian countries. Fragmentation trade, reflected mainly in the trade in parts and components, is expanding more rapidly than the conventional trade in final goods. T...

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Main Author:	Haddad, Mona
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ACCESSORIES AGRICULTURE APPAREL APPLIANCES ASSEMBLERS ASSISTANCE AVERAGE PRODUCTION COSTS BORDER TRADE CAPITAL FLOWS CAPITAL GOODS CHANGES IN TRADE COMMON MARKET COMPARATIVE ADVANTAGE COMPETITIVENESS COMPONENTS CONSTANT RETURNS TO SCALE CUSTOMS CUSTOMS OFFICIALS DEVELOPING REGIONS DIGITAL DUTY DRAWBACK DUTY DRAWBACKS ECONOMIC GEOGRAPHY ECONOMIC INTEGRATION ELECTRICAL MACHINERY ELECTRONICS EUROPEAN UNION EXPANSION OF TRADE EXPORT GROWTH EXPORT ORIENTATION EXPORT PRICES EXPORT PRODUCTS EXPORT-ORIENTED INDUSTRIES EXPORTERS EXPORTS FACTOR ACCUMULATION FINAL GOODS FIXED COSTS FIXED INVESTMENT FOREIGN CAPITAL FOREIGN COUNTRIES FOREIGN COUNTRY FOREIGN DIRECT INVESTMENT FOREIGN TRADE FREE TRADE FREE TRADE AGREEMENT FREE TRADE AREA GDP GLOBAL ECONOMY GLOBAL INTEGRATION GLOBAL TRADE GLOBAL TRADE ANALYSIS GROSS DOMESTIC PRODUCT IMPORT TAXES IMPORT VALUE IMPORTS INCREASING RETURNS INCREASING RETURNS TO SCALE INDUSTRIALIZATION INDUSTRIALIZED COUNTRIES INDUSTRY TRADE INTELLECTUAL PROPERTY INTERMEDIATE GOODS INTERMEDIATE INPUTS INTERNATIONAL PRODUCTION INTRAREGIONAL EXPORTS INTRAREGIONAL TRADE KNOW-HOW LABOR MARKETS MARKET SHARE MARKET SHARES MULTINATIONAL CORPORATIONS MULTINATIONAL FIRMS NATIONAL ECONOMIES NATIONAL INCOME NETWORKS ORGANIZATIONAL CAPITAL OUTSOURCING PATENTS PATTERNS OF TRADE PERSONAL COMPUTERS POLICY RESEARCH PRODUCTION COSTS RAPID INDUSTRIALIZATION REGIONAL AGREEMENTS REGIONAL LEVEL SPECIALIZATION TECHNOLOGICAL CAPABILITIES TECHNOLOGICAL CAPABILITY TECHNOLOGY SPILLOVERS TELECOMMUNICATIONS TELECOMMUNICATIONS EQUIPMENT TOTAL FACTOR PRODUCTIVITY TRADE TRADE AGREEMENT TRADE BARRIERS TRADE COSTS TRADE FLOWS TRADE INTEGRATION TRADE INTENSITY TRADE LIBERALIZATION TRADE PATTERNS TRADE PERFORMANCE TRADE VOLUME TRANSPORT COSTS UNILATERAL TRADE UNILATERAL TRADE LIBERALIZATION UNSKILLED LABOR VALUE OF TRADE VERTICAL SPECIALIZATION WAGE DIFFERENTIALS WAGE INEQUALITY WAGES WORLD MARKET WORLD MARKETS WORLD TRADE
Online Access:	http://documents.worldbank.org/curated/en/2007/03/7436019/trade-integration-east-asia-role-china-production-networks http://hdl.handle.net/10986/7185

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spelling	okr-10986-71852021-04-23T14:02:33Z Trade Integration in East Asia : The Role of China and Production Networks Haddad, Mona ACCESSORIES AGRICULTURE APPAREL APPLIANCES ASSEMBLERS ASSISTANCE AVERAGE PRODUCTION COSTS BORDER TRADE CAPITAL FLOWS CAPITAL GOODS CHANGES IN TRADE COMMON MARKET COMPARATIVE ADVANTAGE COMPETITIVENESS COMPONENTS CONSTANT RETURNS TO SCALE CUSTOMS CUSTOMS OFFICIALS DEVELOPING REGIONS DIGITAL DUTY DRAWBACK DUTY DRAWBACKS ECONOMIC GEOGRAPHY ECONOMIC INTEGRATION ELECTRICAL MACHINERY ELECTRONICS EUROPEAN UNION EXPANSION OF TRADE EXPORT GROWTH EXPORT ORIENTATION EXPORT PRICES EXPORT PRODUCTS EXPORT-ORIENTED INDUSTRIES EXPORTERS EXPORTS FACTOR ACCUMULATION FINAL GOODS FIXED COSTS FIXED INVESTMENT FOREIGN CAPITAL FOREIGN COUNTRIES FOREIGN COUNTRY FOREIGN DIRECT INVESTMENT FOREIGN TRADE FREE TRADE FREE TRADE AGREEMENT FREE TRADE AREA GDP GLOBAL ECONOMY GLOBAL INTEGRATION GLOBAL TRADE GLOBAL TRADE ANALYSIS GROSS DOMESTIC PRODUCT IMPORT TAXES IMPORT VALUE IMPORTS INCREASING RETURNS INCREASING RETURNS TO SCALE INDUSTRIALIZATION INDUSTRIALIZED COUNTRIES INDUSTRY TRADE INTELLECTUAL PROPERTY INTERMEDIATE GOODS INTERMEDIATE INPUTS INTERNATIONAL PRODUCTION INTRAREGIONAL EXPORTS INTRAREGIONAL TRADE KNOW-HOW LABOR MARKETS MARKET SHARE MARKET SHARES MULTINATIONAL CORPORATIONS MULTINATIONAL FIRMS NATIONAL ECONOMIES NATIONAL INCOME NETWORKS ORGANIZATIONAL CAPITAL OUTSOURCING PATENTS PATTERNS OF TRADE PERSONAL COMPUTERS POLICY RESEARCH PRODUCTION COSTS RAPID INDUSTRIALIZATION REGIONAL AGREEMENTS REGIONAL LEVEL SPECIALIZATION TECHNOLOGICAL CAPABILITIES TECHNOLOGICAL CAPABILITY TECHNOLOGY SPILLOVERS TELECOMMUNICATIONS TELECOMMUNICATIONS EQUIPMENT TOTAL FACTOR PRODUCTIVITY TRADE TRADE AGREEMENT TRADE BARRIERS TRADE COSTS TRADE FLOWS TRADE INTEGRATION TRADE INTENSITY TRADE LIBERALIZATION TRADE PATTERNS TRADE PERFORMANCE TRADE VOLUME TRANSPORT COSTS UNILATERAL TRADE UNILATERAL TRADE LIBERALIZATION UNSKILLED LABOR VALUE OF TRADE VERTICAL SPECIALIZATION WAGE DIFFERENTIALS WAGE INEQUALITY WAGES WORLD MARKET WORLD MARKETS WORLD TRADE Production networks have been at the heart of the recent growth in trade among East Asian countries. Fragmentation trade, reflected mainly in the trade in parts and components, is expanding more rapidly than the conventional trade in final goods. This is mainly due to the relatively more favorable policy setting for international production, agglomeration benefits arising from the early entry into this new form of specialization, considerable intercountry wage differentials in the region, lower trade and transport costs, and specialization in products exhibiting increasing returns to scale. The economic integration of China has deepened production fragmentation in East Asia, countering fears of crowding out other countries for international specialization. International production fragmentation in East Asia has intensified intraregional trade but has depended heavily on extraregional trade in final goods. While production networks centered on China have contributed significantly to growth in East Asia, they also breed vulnerabilities. They have not automatically led to technology spillovers and have led to an extreme interdependence across East Asian countries. 2012-06-05T20:34:27Z 2012-06-05T20:34:27Z 2007-03 http://documents.worldbank.org/curated/en/2007/03/7436019/trade-integration-east-asia-role-china-production-networks http://hdl.handle.net/10986/7185 English Policy Research Working Paper; No. 4160 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research East Asia and Pacific China
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	ACCESSORIES AGRICULTURE APPAREL APPLIANCES ASSEMBLERS ASSISTANCE AVERAGE PRODUCTION COSTS BORDER TRADE CAPITAL FLOWS CAPITAL GOODS CHANGES IN TRADE COMMON MARKET COMPARATIVE ADVANTAGE COMPETITIVENESS COMPONENTS CONSTANT RETURNS TO SCALE CUSTOMS CUSTOMS OFFICIALS DEVELOPING REGIONS DIGITAL DUTY DRAWBACK DUTY DRAWBACKS ECONOMIC GEOGRAPHY ECONOMIC INTEGRATION ELECTRICAL MACHINERY ELECTRONICS EUROPEAN UNION EXPANSION OF TRADE EXPORT GROWTH EXPORT ORIENTATION EXPORT PRICES EXPORT PRODUCTS EXPORT-ORIENTED INDUSTRIES EXPORTERS EXPORTS FACTOR ACCUMULATION FINAL GOODS FIXED COSTS FIXED INVESTMENT FOREIGN CAPITAL FOREIGN COUNTRIES FOREIGN COUNTRY FOREIGN DIRECT INVESTMENT FOREIGN TRADE FREE TRADE FREE TRADE AGREEMENT FREE TRADE AREA GDP GLOBAL ECONOMY GLOBAL INTEGRATION GLOBAL TRADE GLOBAL TRADE ANALYSIS GROSS DOMESTIC PRODUCT IMPORT TAXES IMPORT VALUE IMPORTS INCREASING RETURNS INCREASING RETURNS TO SCALE INDUSTRIALIZATION INDUSTRIALIZED COUNTRIES INDUSTRY TRADE INTELLECTUAL PROPERTY INTERMEDIATE GOODS INTERMEDIATE INPUTS INTERNATIONAL PRODUCTION INTRAREGIONAL EXPORTS INTRAREGIONAL TRADE KNOW-HOW LABOR MARKETS MARKET SHARE MARKET SHARES MULTINATIONAL CORPORATIONS MULTINATIONAL FIRMS NATIONAL ECONOMIES NATIONAL INCOME NETWORKS ORGANIZATIONAL CAPITAL OUTSOURCING PATENTS PATTERNS OF TRADE PERSONAL COMPUTERS POLICY RESEARCH PRODUCTION COSTS RAPID INDUSTRIALIZATION REGIONAL AGREEMENTS REGIONAL LEVEL SPECIALIZATION TECHNOLOGICAL CAPABILITIES TECHNOLOGICAL CAPABILITY TECHNOLOGY SPILLOVERS TELECOMMUNICATIONS TELECOMMUNICATIONS EQUIPMENT TOTAL FACTOR PRODUCTIVITY TRADE TRADE AGREEMENT TRADE BARRIERS TRADE COSTS TRADE FLOWS TRADE INTEGRATION TRADE INTENSITY TRADE LIBERALIZATION TRADE PATTERNS TRADE PERFORMANCE TRADE VOLUME TRANSPORT COSTS UNILATERAL TRADE UNILATERAL TRADE LIBERALIZATION UNSKILLED LABOR VALUE OF TRADE VERTICAL SPECIALIZATION WAGE DIFFERENTIALS WAGE INEQUALITY WAGES WORLD MARKET WORLD MARKETS WORLD TRADE
spellingShingle	ACCESSORIES AGRICULTURE APPAREL APPLIANCES ASSEMBLERS ASSISTANCE AVERAGE PRODUCTION COSTS BORDER TRADE CAPITAL FLOWS CAPITAL GOODS CHANGES IN TRADE COMMON MARKET COMPARATIVE ADVANTAGE COMPETITIVENESS COMPONENTS CONSTANT RETURNS TO SCALE CUSTOMS CUSTOMS OFFICIALS DEVELOPING REGIONS DIGITAL DUTY DRAWBACK DUTY DRAWBACKS ECONOMIC GEOGRAPHY ECONOMIC INTEGRATION ELECTRICAL MACHINERY ELECTRONICS EUROPEAN UNION EXPANSION OF TRADE EXPORT GROWTH EXPORT ORIENTATION EXPORT PRICES EXPORT PRODUCTS EXPORT-ORIENTED INDUSTRIES EXPORTERS EXPORTS FACTOR ACCUMULATION FINAL GOODS FIXED COSTS FIXED INVESTMENT FOREIGN CAPITAL FOREIGN COUNTRIES FOREIGN COUNTRY FOREIGN DIRECT INVESTMENT FOREIGN TRADE FREE TRADE FREE TRADE AGREEMENT FREE TRADE AREA GDP GLOBAL ECONOMY GLOBAL INTEGRATION GLOBAL TRADE GLOBAL TRADE ANALYSIS GROSS DOMESTIC PRODUCT IMPORT TAXES IMPORT VALUE IMPORTS INCREASING RETURNS INCREASING RETURNS TO SCALE INDUSTRIALIZATION INDUSTRIALIZED COUNTRIES INDUSTRY TRADE INTELLECTUAL PROPERTY INTERMEDIATE GOODS INTERMEDIATE INPUTS INTERNATIONAL PRODUCTION INTRAREGIONAL EXPORTS INTRAREGIONAL TRADE KNOW-HOW LABOR MARKETS MARKET SHARE MARKET SHARES MULTINATIONAL CORPORATIONS MULTINATIONAL FIRMS NATIONAL ECONOMIES NATIONAL INCOME NETWORKS ORGANIZATIONAL CAPITAL OUTSOURCING PATENTS PATTERNS OF TRADE PERSONAL COMPUTERS POLICY RESEARCH PRODUCTION COSTS RAPID INDUSTRIALIZATION REGIONAL AGREEMENTS REGIONAL LEVEL SPECIALIZATION TECHNOLOGICAL CAPABILITIES TECHNOLOGICAL CAPABILITY TECHNOLOGY SPILLOVERS TELECOMMUNICATIONS TELECOMMUNICATIONS EQUIPMENT TOTAL FACTOR PRODUCTIVITY TRADE TRADE AGREEMENT TRADE BARRIERS TRADE COSTS TRADE FLOWS TRADE INTEGRATION TRADE INTENSITY TRADE LIBERALIZATION TRADE PATTERNS TRADE PERFORMANCE TRADE VOLUME TRANSPORT COSTS UNILATERAL TRADE UNILATERAL TRADE LIBERALIZATION UNSKILLED LABOR VALUE OF TRADE VERTICAL SPECIALIZATION WAGE DIFFERENTIALS WAGE INEQUALITY WAGES WORLD MARKET WORLD MARKETS WORLD TRADE Haddad, Mona Trade Integration in East Asia : The Role of China and Production Networks
geographic_facet	East Asia and Pacific China
relation	Policy Research Working Paper; No. 4160
description	Production networks have been at the heart of the recent growth in trade among East Asian countries. Fragmentation trade, reflected mainly in the trade in parts and components, is expanding more rapidly than the conventional trade in final goods. This is mainly due to the relatively more favorable policy setting for international production, agglomeration benefits arising from the early entry into this new form of specialization, considerable intercountry wage differentials in the region, lower trade and transport costs, and specialization in products exhibiting increasing returns to scale. The economic integration of China has deepened production fragmentation in East Asia, countering fears of crowding out other countries for international specialization. International production fragmentation in East Asia has intensified intraregional trade but has depended heavily on extraregional trade in final goods. While production networks centered on China have contributed significantly to growth in East Asia, they also breed vulnerabilities. They have not automatically led to technology spillovers and have led to an extreme interdependence across East Asian countries.
format	Publications & Research :: Policy Research Working Paper
author	Haddad, Mona
author_facet	Haddad, Mona
author_sort	Haddad, Mona
title	Trade Integration in East Asia : The Role of China and Production Networks
title_short	Trade Integration in East Asia : The Role of China and Production Networks
title_full	Trade Integration in East Asia : The Role of China and Production Networks
title_fullStr	Trade Integration in East Asia : The Role of China and Production Networks
title_full_unstemmed	Trade Integration in East Asia : The Role of China and Production Networks
title_sort	trade integration in east asia : the role of china and production networks
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2007/03/7436019/trade-integration-east-asia-role-china-production-networks http://hdl.handle.net/10986/7185
_version_	1764401580880166912

Trade Integration in East Asia : The Role of China and Production Networks

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