Stability of Production Networks in East Asia: Duration and Survival of Trade

Ayako Obashi ()

No d006, Working Papers from Economic Research Institute for ASEAN and East Asia (ERIA)

Abstract: This paper sheds light on the stability of international production networks in East Asia from the perspective of the duration and survival of bilateral trade relationships at the product-line level. Using highly disaggregated data for intra-East Asian machinery trade, survival analysis is conducted as well as the examinations of the duration and volatility of trade relationships. The product-level analyses reveal that, compared to machinery finished products, machinery parts & components are traded through longer-lived and more stable relationships among East Asian countries. Once transactions are started, trade relationships of machinery parts & components are more likely to be maintained between countries even at a long distance, regardless of the exchange-rate fluctuations. The probability of discontinuing trade relationships of machinery finished products, on the other hand, are more likely to be sensitive to the level of trading cost as well as the exchange-rate fluctuations.

Keywords: Duration of trade; survival analysis; fragmentation; East Asia. (search for similar items in EconPapers)
JEL-codes: F10 F14 (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Stability of production networks in East Asia: Duration and survival of trade (2010)
Working Paper: Stability of Production Networks in East Asia: Duration and Survival of Trade (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:era:wpaper:d006

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