Production fragmentation, upstreamness, and value-added: evidence from factory Asia 1990-2005

Ito Tadashi and Pierre-Louis Vézina

No 535, IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO)

Abstract: We exploit the recent release of the 2005 Asian Input-Output Matrix to dress a picture of the geographic fragmentation of value added in Factory Asia from 1990 to 2005. We document 3 stylized facts. The first is that the average share of foreign value added embedded in production rose by about 7 percentage points between 1990 and 2005, from 9% to 16%. The second is that, contrary to popular belief, China's production embeds a smaller share of foreign value added than other Factory Asia countries'. Between 1990 and 2005 among Factory Asia countries China grew most after Japan as a source of value added to other countries' production. Third, country-industries at the upstream and downstream extremities of the supply chain embed a smaller share of foreign value added than those with intermediate levels of upstreamness.

Keywords: Asia; China; International economic relations; International trade; Industry; Factory Asia; Supply chains; Upstreamness (search for similar items in EconPapers)
JEL-codes: F13 F15 (search for similar items in EconPapers)
Date: 2015-08-01
New Economics Papers: this item is included in nep-int, nep-sea and nep-tid
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Citations: View citations in EconPapers (1)

Published in IDE Discussion Paper = IDE Discussion Paper, No. 535. 2015-08-01

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Journal Article: Production fragmentation, upstreamness, and value added: Evidence from Factory Asia 1990–2005 (2016)
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