Evolution of Machinery Production Networks: Linkage of North America with East Asia

Mitsuyo Ando and Fukunari Kimura
Additional contact information
Mitsuyo Ando: Keio University

No DP-2013-32, Working Papers from Economic Research Institute for ASEAN and East Asia (ERIA)

Abstract: This paper investigates the developing pattern of machinery trade and the extent and depth of production networks in North America from the perspective of their links with East Asia in the last two decades. Our descriptive analysis based on the total value of trade and the extensive margin demonstrates the expanding fragmentation of production in North America with a strong connection of Mexico, in addition to the US, with East Asia, particularly in the electric machinery sector. Our quantitative analysis on the total value of trade as well as extensive and intensive margins verifies the existence of such a strong connection with East Asia for machinery imports by North America, where Mexico enhanced a bridging role between East Asia and the US. These results reflect the reduction in services link costs, the further evolution of production sharing in the US-Mexico nexus, and the strengthening competitiveness for production networks in East Asia.

Keywords: the 2nd unbundling; fragmentation; agglomeration; free trade agreement (FTA); extensive margin (search for similar items in EconPapers)
JEL-codes: F14 F15 F23 L23 (search for similar items in EconPapers)
Pages: 58 pages.
Date: 2013-11
New Economics Papers: this item is included in nep-hme and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.eria.org/ERIA-DP-2013-32.pdf (application/pdf)

Related works:
Journal Article: Evolution of Machinery Production Networks: Linkage of North America with East Asia* (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:era:wpaper:dp-2013-32

Access Statistics for this paper

More papers in Working Papers from Economic Research Institute for ASEAN and East Asia (ERIA) Contact information at EDIRC.
Bibliographic data for series maintained by Ranti Amelia ( this e-mail address is bad, please contact ).