Geometry of Global Value Chains in East Asia: The Role of Industrial Networks and Trade Policies

"Global Value Chains in a Changing World" Edited by Deborah K. Elms and Patrick Low, Fung Global Institute (FGI), Nanyang Technological University (NTU) and World Trade Organization (WTO), 2013 ISBN: 978-92-870-3882-1

24 Pages Posted: 19 Jul 2013

See all articles by Hubert Escaith

Hubert Escaith

affiliation not provided to SSRN

Satoshi Inomata

Institute of Developing Economies (IDE-JETRO)

Date Written: June 9, 2013

Abstract

The paper provides an introduction to the use of input-output analysis and graph theory for understanding trade in the global value chains perspective. Applying these topological properties to the East Asian and Pacific context, it shows that the inter-industry network moved from a simple hub-and-spokes cluster to a more complex structure with the emergence of China and the specialization of several countries as secondary pivots. The densification of productive networks resulted from the coincidence of business strategies with the promotion of export-led growth strategies from developing East Asian countries. The trade facilitation policies lowered tariff duties and reduced other transaction costs. Tariff escalation was greatly reduced, lessening its anti-export bias and improving the competitiveness of second-tier national suppliers. The other axis of trade facilitation focused on improving logistics services and cross-border procedures.

Keywords: Global value chains, industrial networks, regional integration, East Asia, input-output analysis, effective protection rate, trade facilitation

JEL Classification: D57, F13, F14, F15, F23, O19, O24

Suggested Citation

Escaith, Hubert and Inomata, Satoshi, Geometry of Global Value Chains in East Asia: The Role of Industrial Networks and Trade Policies (June 9, 2013). "Global Value Chains in a Changing World" Edited by Deborah K. Elms and Patrick Low, Fung Global Institute (FGI), Nanyang Technological University (NTU) and World Trade Organization (WTO), 2013 ISBN: 978-92-870-3882-1, Available at SSRN: https://ssrn.com/abstract=2294925

Hubert Escaith (Contact Author)

affiliation not provided to SSRN

Satoshi Inomata

Institute of Developing Economies (IDE-JETRO) ( email )

Tokyo
Japan

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