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International Production Networks in East Asia's Electronics Industry

Forthcoming, Review of Integrative Business and Economics Research, Vol. 6, Issue 1, pp. 116-140

25 Pages Posted: 7 Nov 2016  

Shahrun Nizam Abdul-Aziz

Sultan Idris Education University

Normala Zulkifli

Sultan Idris Education University

Date Written: 2016

Abstract

This study investigated the East Asia's electronic production network and its evolution from 1990 to 2010. A network analysis is used to identify the major trade links for both parts and components and final products, and changes in roles, trading partners and network patterns for the years 1990, 1995, 2000, 2005 and 2010. The results suggested that the role of Japan and the Korea in the 1990s expanded to becoming exporters of electronic parts and components and final electronics as well as importers of final electronics. In contrast, the role of Malaysia and Thailand seems to have been confined to being exporter of both electronic parts and components and final electronics. Meanwhile, some countries such as Indonesia, the Philippines and China experienced erratic changes in their role, while that of Singapore remains unchanged. The results also indicate that the relocation of Japanese and Korean FDI to lower-labour-cost countries such as China in the 2000s has forced some ASEAN countries to each upgrade their electronics industry and emerged as a main supplier of electronic parts and components for their neighbouring countries. These circumstances, in turn, have changed the pattern of hierarchy within the international electronics production network in the ASEAN region.

Keywords: International Production Networks, Electronic Industry, East Asia, Electronic Parts and Components

JEL Classification: F15, F12, E23

Suggested Citation

Abdul-Aziz, Shahrun Nizam and Zulkifli, Normala, International Production Networks in East Asia's Electronics Industry (2016). Forthcoming, Review of Integrative Business and Economics Research, Vol. 6, Issue 1, pp. 116-140. Available at SSRN: https://ssrn.com/abstract=2865301

Shahrun Nizam Abdul-Aziz (Contact Author)

Sultan Idris Education University ( email )

Tanjong Malim
Perak Darul Ridzuan
Proton City, Tg. Malim, Perak 35900
Malaysia

Normala Zulkifli

Sultan Idris Education University ( email )

Tanjong Malim
Perak Darul Ridzuan
Proton City, Tg. Malim, Perak 35900
Malaysia

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