Shifts in Production in East Asia

Laura Berger-Thomson and Mary-Alice Doyle
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Laura Berger-Thomson: Reserve Bank of Australia
Mary-Alice Doyle: Reserve Bank of Australia

RBA Bulletin (Print copy discontinued), 2013, 29-38

Abstract: Over the past few decades, manufacturing production has shifted from the higher to the lower income economies in east Asia. This article uses input-output analysis to explore how total value added in manufacturing has shifted around the region. It finds that for most economies, the domestic content of manufacturing production has decreased over time, reflecting the increasing complexity of supply chains and the growth of intra-industry trade in the region. Also, a rising share of the region’s production has been taking place in China, and this trend is expected to continue for some time yet.

Keywords: China; Indonesia; Japan; Malaysia; South Korea; Taiwan; Thailand; east Asia; production; manufacturing; value added; value-added; input-output; FDI; foreign direct investment; intra-regional trade; overseas subsidiaries; hollowing out; offshoring; outsourcing (search for similar items in EconPapers)
Date: 2013
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