Global Production Networks in Electronics and Intra-Asian Trade
LICOS Discussion Paper No. 257/2010
37 Pages Posted: 12 Apr 2010
Date Written: March 2010
Abstract
The growth of East Asia’s intra-regional trade is driven largely by increased component trade within global electronics production networks. Data on both electronics trade and production elucidate a pattern of specialization in which upper- and middle-income countries produce sophisticated components and lower-income countries assemble lower value-added final goods. There is evidence of increasing sophistication within the electronics sector by the Newly Industrialized Economies and to a lesser extent by ASEAN countries. Despite the marked increase in intra-regional trade, developing East Asian countries remain heavily dependent on developed-country markets. When Western export demand rapidly contracted during the 2008-2009 economic crisis, these specialization patterns led the rapid diffusion of the business cycle shock throughout the East Asian region.
Keywords: Global production networks, electronics, Asian trade, business cycle
JEL Classification: F14, F23, F4, L63
Suggested Citation: Suggested Citation
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