Resiliency of Production Networks in Asia: Evidence from the Asian Crisis

Ayako Obashi ()

No DP-2009-21, Working Papers from Economic Research Institute for ASEAN and East Asia (ERIA)

Abstract: This paper presents the resiliency of international production networks stretched across the Asian region in face of the Asian financial and currency crisis back in 1997-98, as well as confirming its stability with consideration to adverse effects of the crisis. To examine the probability of survival once a trade relationship is established and the probability of revival after the transaction is broken off, survival analysis is conducted using the country-product level trade data. A series of survival analyses provide evidence supporting the view that transactions of intermediate goods within production networks are more likely to be stable and resilient to a temporary disruption compared to other transactions. First, even after considering the impact of the Asian crisis, machinery parts & components are more likely to be traded through long-lived trade relationships compared to finished products in intra-Asian trade. Second, machinery parts & components are no exception in that a non negligible portion of trade relationships was actually broken off amid the Asian crisis, but many of them were restored shortly afterward as compared to the others.

Pages: 26 pages.
Date: 2009-10-01
New Economics Papers: this item is included in nep-int and nep-sea
References: View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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http://eria.org/ERIA-DP-2009-21.pdf (application/pdf)

Related works:
Chapter: Resiliency of production networks in Asia: Evidence from the Asian crisis (2011)
Working Paper: Resiliency of Production Networks in Asia: Evidence from the Asian Crisis (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:era:wpaper:dp-2009-21

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