Global Value Chain in East Asia Under 'New Normal': Ideology-Technology-Institution Nexus

28 Pages Posted: 13 Apr 2020

See all articles by Byung-il Choi

Byung-il Choi

Ewha Womans University - Graduate School of International Studies (GSIS)

Date Written: March 30, 2020

Abstract

This paper analyzes how the current Global Value Chain (GVC) of East Asia has been established, and attempts to project the future trajectory of GVC under New Normal in the global trading system. For this purpose, the framework of Ideology-TechnologyInstitution nexus is presented with focus on the dynamics of interplay between ideology and technology, duly recognizing the dual-aspect of technology- a platform for business and also for national defense. The paper analyzes how the Information and Communication Technology (ICT) of the 1990s played a role of “facilitator” in shaping the GVC of East Asia, where China plays ‘factory for final assembly’ and the US plays ‘the largest consumer’. Under New Normal, digital technology is likely to play the opposite role of “disrupting” the GVC of East Asia, unlike ICT. The paper explores the mechanism behind this great disruption. What is driving New Normal is the US-China power competition, seeking for dominance in East Asia and beyond. This paper argues that New Normal is not temporary shock, but will last for some time. Under this presumption, the paper presents three scenarios for the future trajectory of GVC in East Asia.

Keywords: Global Value Chain, East Asia, New Normal, Ideology-TechnologyInstitution Nexus, Dual-Aspect of Technology, Trade-Security Nexus

JEL Classification: F13, F51, F68

Suggested Citation

Choi, Byung-il, Global Value Chain in East Asia Under 'New Normal': Ideology-Technology-Institution Nexus (March 30, 2020). East Asian Economic Review, Vol. 24, No. 1 (March 2020) , Available at SSRN: https://ssrn.com/abstract=3574488 or http://dx.doi.org/10.2139/ssrn.3574488

Byung-il Choi (Contact Author)

Ewha Womans University - Graduate School of International Studies (GSIS) ( email )

11-1 Daehyun-dong
Seodaemun-gu
Seoul
Korea, Republic of (South Korea)

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