Global production networks and the evolution of industrial capabilities: Does production sharing warp the Product Space?

Russell Thomson () and Prema-chandra Athukorala

Departmental Working Papers from The Australian National University, Arndt-Corden Department of Economics

Abstract: Do production capabilities of countries evolve from existing capabilities, or do they emerge de novo? The Product Space approach developed by Hidalgo, Klinger, Barabási & Hausmann (2007) postulates that a country’s existing industrial structure largely determines its opportunities for industrial upgrading. We advance the Product Space approach to accommodate the role of global production sharing. Using a newly constructed multi-country dataset of manufacturing exports that distinguishes between trade within global production networks and traditional horizontal trade we show that existing industrial structure has a lesser impact on industrial upgrading within vertically integrated global industries.

Keywords: Product space; global production sharing; global production networks; manufacturing exports (search for similar items in EconPapers)
JEL-codes: F14 F23 O14 O24 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2018
New Economics Papers: this item is included in nep-int
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Related works:
Journal Article: Global production networks and the evolution of industrial capabilities: does production sharing warp the product space? (2020)
Working Paper: Global production networks and the evolution of industrial capabilities: Does production sharing warp the Product Space? (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:pas:papers:2018-06

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