Production networks and international trade: China, Brazil and Mexico

K.C. Fung, Hsiang-Chih Hwang, Francis Ng and Jesús Seade

The North American Journal of Economics and Finance, 2015, vol. 34, issue C, 421-429

Abstract: In this paper, we examine and contrast the production networks in China, Brazil and Mexico. We highlight three results. First, over the last two decades, China's intensity of trade in parts and components has shifted from other members of Greater China to South Korea and ASEAN countries. Second, even though China's production network is mainly Asian, its parts and components trading partners are increasingly global. Brazil also increasingly trades its parts with China and East Asia, while Mexico is still focused on its trade with the United States. Third, Greater China has become a major source of parts and components to Mexican and Brazilian imports. We highlight the importance of such a pan-Pacific link and anticipate that the joint China–Brazil–Mexico production network will continue to grow.

Keywords: East Asia; Fragmentation; Global value chain; Latin America; Production networks; Trade in parts and components (search for similar items in EconPapers)
JEL-codes: F10 F12 F14 L23 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecofin:v:34:y:2015:i:c:p:421-429

DOI: 10.1016/j.najef.2015.09.002

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