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Trade integration in East Asia : the Role of China and production networks

Author: Mona Haddad
Publisher: [Washington, D.C.] : World Bank, 2007.
Series: Policy research working papers (Online), 4160.
Edition/Format:   eBook : Document : International government publication : EnglishView all editions and formats
Summary:
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  Read more...
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Genre/Form: Electronic books
Additional Physical Format: Print version:
Haddad, Mona.
Trade integration in East Asia.
[Washington, D.C.] : World Bank, East Asia and Pacific Region, Poverty Reduction and Economic Management Sector Dept., [2007]
(OCoLC)123435148
Material Type: Document, Government publication, International government publication, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Mona Haddad
OCLC Number: 123435149
Notes: Title from PDF file as viewed on 4/19/2007.
Reproduction Notes: Electronic reproduction. [Place of publication not identified] : HathiTrust Digital Library, 2010. MiAaHDL
Description: 1 online resource (36 pages) : illustrations
Details: Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002.
Series Title: Policy research working papers (Online), 4160.
Responsibility: Mona Haddad.

Abstract:

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.

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