Structure and comparison of the electronics and motor vehicle value chains in East Asia

Ikuo Kuroiwa

No 694, IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO)

Abstract: This paper explores the structure of the electronics and the motor vehicle value chains in East Asia. Trade in value added analysis and its decomposition method are applied to the inter-country input–output data of the Organisation for Economic Co-operation and Development. The method of value chain mapping has been introduced to illustrate the upstream and downstream transactions of goods and services along the value chain. The result of the analysis shows that the electronics industry has a greater vertical specialisation (VS) share than the automotive industry. The decomposition analysis reveals that the Korean industries were strongly integrated into the Chinese value chains, whereas the Thai industries continued to be overwhelmingly dependent on Japan, albeit, with increased linkages with neighbouring Southeast Asian economies. Moreover, value chain mapping demonstrated that China has increased its presence not only as an export platform for multinational firms but also as a consumer of final goods―especially for the Korean industries.

Keywords: Global value chains; Industrial agglomeration; Trade in value added; East Aisa; International trade; Industrial structure (search for similar items in EconPapers)
JEL-codes: C67 L62 L63 (search for similar items in EconPapers)
Date: 2018-03
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Published in IDE Discussion Paper = IDE Discussion Paper, No. 694. 2018-03

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