China and the Future of Asian Electronics Trade

30 Pages Posted: 22 Jan 2009

See all articles by Byron Gangnes

Byron Gangnes

University of Hawaii - Department of Economics

Ari Van Assche

affiliation not provided to SSRN

Date Written: February 1, 2008

Abstract

China's emergence as a key player in the global electronics industry has ignited concerns among its East Asian neighbors. Upper and middle-income economies fear that China's rise is hollowing out their electronics industrial base. Lower-income economies worry that they cannot compete with China's seemingly endless supply of cheap labor. In this chapter, we describe the forces behind China's rise in electronics, and we consider the implications for regional electronics trade and production patterns. Using a unique world electronics production data set, we investigate the upgrading trajectories of East Asian economies within the industry. Consistent with the theory of international production fragmentation, we find that Japan and the NIEs have a more sophisticated production mix than their lower-income neighbors. These latter economies, however, are upgrading their electronics industries more rapidly.

Keywords: China, trade, technological upgrading, electronics

JEL Classification: F14, O30, L63

Suggested Citation

Gangnes, Byron and Assche, Ari Van, China and the Future of Asian Electronics Trade (February 1, 2008). CIRANO - Scientific Publications 2008s-05, Available at SSRN: https://ssrn.com/abstract=1330872 or http://dx.doi.org/10.2139/ssrn.1330872

Byron Gangnes

University of Hawaii - Department of Economics ( email )

Honolulu, HI 96822
United States

Ari Van Assche (Contact Author)

affiliation not provided to SSRN

No Address Available

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