The Role of China, Japan, and Korea in Machinery Production Networks

Ayako Obashi () and Fukunari Kimura

No DP-2016-10, Working Papers from Economic Research Institute for ASEAN and East Asia (ERIA)

Abstract: China, Japan, and Korea have been the three largest players in East Asian machinery production networks. This paper employs a new method of analysing finely disaggregated international trade data that applies the concept of zero trade flows, least-traded goods, and intensive/extensive margins of trade growth and scrutinises changes in the roles of China, Japan, and Korea in machinery production networks between 2007 and 2013. We find, first, that China became a dominant player in global machinery production networks in terms of both export values and the diversity and density of product-destination pairs. Second, the growth of Korea as machinery parts and components supplier was also salient and Korea’s dependency on China rose sharply. Third, Japan continued to stagnate and machinery production links between Korea and Japan weakened substantially.Length: 33 pages.

Keywords: zero trade; intensive and extensive margins; least-traded goods; productdestination pairs; machinery industry; parts and components trade (search for similar items in EconPapers)
JEL-codes: F14 F23 (search for similar items in EconPapers)
Date: 2016-03
New Economics Papers: this item is included in nep-cna, nep-int, nep-net and nep-sea
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Citations: View citations in EconPapers (3)

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Journal Article: The Role of China, Japan, and Korea in Machinery Production Networks (2016)
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