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China in the international fragmentation of production: Evidence from the ICT industry

Alessia Amighini ()

No 151, KITeS Working Papers from KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy

Abstract: This paper investigates the position of China in the international fragmentation of production in the ICT industry, the most dynamic and globally dispersed sector in the world economy. The evidence shows that during the 1990s China dramatically increased its market shares in ICT products and now ranks among the three top world exporters. Moreover, China has upgraded from mere assembly of imported inputs to the manufacturing of high-tech intermediate goods. This supports the hypothesis that industrial upgrading occurred in some tradable sectors through technological learning associated with processing trade. Therefore, a pattern of specialization initially dominated by processing trade could be favourable to a country's long-term development, to the extent that entering at the lower end of high-tech sectors is promotive of catching up in more sophisticated technology-intensive production.

Keywords: China; Fragmentation; Industrial Upgrading; Information and Communication Technology. (search for similar items in EconPapers)
JEL-codes: F02 F14 L63 N60 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-sea and nep-tra
Date: 2004-01, Revised 2004-01
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Journal Article: China in the international fragmentation of production: Evidence from the ICT industry (2005) Downloads
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