Substitution effect of Asian economies on China’s industrial and supply chains: from the perspective of global production network

Lizhi Xing (), Shuo Jiang, Simeng Yin and Fangke Liu
Additional contact information
Lizhi Xing: Beijing University of Technology
Shuo Jiang: Beijing University of Technology
Simeng Yin: Beijing University of Technology
Fangke Liu: Beijing University of Technology

Palgrave Communications, 2024, vol. 11, issue 1, 1-27

Abstract: Abstract This paper views China Production Network (CPN) as an integral component of the Global Production Network (GPN) and constructs null model (GIVCBN-I model) and the counterfactual model (GIVCBN-II or GIVCBN-III model) to identify and measure the potential industrial relocation risk exposure of CPN based on the Multi-Regional Input-Output (MRIO) table. The main findings are as follows. Firstly, Altasia will induce more of China’s industrial and supply chains to break compared with ASEAN, which also means that strong industrial complementarity exists between Japan, South Korea, India, Bangladesh and the ASEAN member countries, enabling Altasia to have a more significant substitution effect on China. Secondly, the counterfactual models’ network-level characteristic indicators are worse than those of the null model in economic terms, suggesting that removing trade barriers for intermediate goods within Altasia could lead to the decoupling of industrial sectors in the CPN, thereby accelerating the trend of China’s industrial and supply chains relocating offshore. Thirdly, according to the comparison results of node-level characteristic indicators, Altasia has weakened China’s influence scope, profitability, and robustness of risk within the global industrial and supply chains, but mainly concentrating on its resource-intensive and labor-intensive sectors rather than capital-intensive and technology-intensive sectors, which indicates that some China’s industrial sectors still maintain substantial competitive advantages in the GPN. In sum, this paper provides theoretical guidance for identifying and analyzing the trends of industrial relocation in the Asia-Pacific region and helps industrial policymakers deepen the understanding of regional economic integration and its impact.

Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1057/s41599-024-03797-6 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palcom:v:11:y:2024:i:1:d:10.1057_s41599-024-03797-6

Ordering information: This journal article can be ordered from
https://www.nature.com/palcomms/about

DOI: 10.1057/s41599-024-03797-6

Access Statistics for this article

More articles in Palgrave Communications from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().