Global Production Networks in Electronics and Intra-Asian Trade

LICOS Discussion Paper No. 257/2010

37 Pages Posted: 12 Apr 2010

See all articles by Byron Gangnes

Byron Gangnes

University of Hawaii - Department of Economics

Ari Van Assche

HEC Montreal; Center for Interuniversity Research and Analysis on Organization (CIRANO)

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

Gangnes, Byron and Van Assche, Ari, Global Production Networks in Electronics and Intra-Asian Trade (March 2010). LICOS Discussion Paper No. 257/2010, Available at SSRN: https://ssrn.com/abstract=1587978 or http://dx.doi.org/10.2139/ssrn.1587978

Byron Gangnes (Contact Author)

University of Hawaii - Department of Economics ( email )

Honolulu, HI 96822
United States

Ari Van Assche

HEC Montreal ( email )

3000, Chemin de la Côte-Sainte-Catherine
Montreal, Quebec H2X 2L3
Canada

Center for Interuniversity Research and Analysis on Organization (CIRANO) ( email )

2020 rue University, 25th floor
Montreal H3C 3J7, Quebec
Canada

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