China's integration into global production networks and its implications for export-led growth strategy in other countries in the region

Prema-chandra Athukorala ()

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

Abstract: TThis paper examines the implications of China's rapid integration into global production networks for export performance of countries in Southeast Asia. In a clear departure from the conventional practice, the trade flow analysis of the paper is based on a careful disaggregation of reported trade data into components and final goods, with a view to delineating supply-side complementarities arising from cross-border production fragmentation. There is clear evidence that network-related trade in components has strengthened Southeast Asia's trade links with China, opening up new opportunities for the expansion of component production/assembly writhing vertically integrated global industries. However, these trade links with China have not lessoned the dependence of growth dynamism of these countries on the global economy; the dynamism of regional cross-border production networks depends inexorably on China's trade in final goods with North America and the European Union.

Keywords: China; Southeast Asia; production fragmentation; global production networks (search for similar items in EconPapers)
JEL-codes: F14 F23 O53 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cna, nep-cse, nep-dev, nep-int and nep-sea
Date: 2008
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Persistent link: http://EconPapers.repec.org/RePEc:pas:papers:2008-04

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