Production networks in the wind turbine industry, which place for developing countries in East Asia?

Son Nguyen and Minh Ha-Duong

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Abstract: My doctoral research intersects two recent developments of the global economy. The first is the emergence of the wind turbine industry, to provide the machines for climate-friendly electricity generation. The second is the increasing importance of production networks in East Asia. Production networks are defined by the cross-border dispersion of component production/assembly within vertically integrated production processes. In industries where a production network pattern is in place, each country specializes in a particular stage of the production sequence. The ultimate goal of my research is to understand which factors determine the participation of East Asia developing countries in wind turbine industry's production network. The findings from this research will broaden our understanding on production networks and its policy implications for developing countries in East Asia, Vietnam in particular. This first-year poster presents four preliminary trade data analysis results. A) Except for a unique decline in 2009, the extent of the wind turbine network had been expanding during the period 2007-2014. B) The network was intra-regional rather than inter-regional. C) Europe was the largest one followed by Asia. D) Developing countries in East Asia only account for minor share of the network. Next, these findings will be confronted to the existing theoretical concept models based on neo-classical trade theory; industrial organization theory and global value chain theory. In the following years, such quantitative international trade analysis will be completed by qualitative sector surveys, most likely in Europe.

Keywords: International Economics; Organization Behavior; Trade; Production fragmentation networks; Renewable Energy; Wind turbine industry (search for similar items in EconPapers)
Date: 2016-04-14
New Economics Papers: this item is included in nep-ene, nep-ino, nep-int, nep-sea and nep-sog
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Published in ABIES doctoral days, Apr 2016, Paris, France

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