Production Networks And Trade Patterns: East Asia In A Global Context

Date Added: Oct 2009
Format: PDF

This paper examines the implications of global production sharing for economic integration in East Asia, with emphasis on the behaviour of trade flows in the wake of the 2008 global economic crisis. It is found that, while 'Network trade' has generally grown faster than total world trade in manufacturing, the degree of dependence of East Asia on this new form of international specialisation is proportionately larger than elsewhere in the world. Trade within production networks has certainly strengthened economic interdependence among countries in the region, with China playing a pivotal role as the premier centre of final assembly.