Global Production Sharing and US-China Trade Relations

Prema-chandra Athukorala and Nobuaki Yamashita

Departmental Working Papers from The Australian National University, Arndt-Corden Department of Economics

Abstract: This paper examines US-China trade relations, focusing on the ongoing process of global production sharing global production sharing—the breakup of the production processes into geographically separated stag—and the resulting trade complementarities between the two countries in world manufacturing trade. The results suggest that the USChina trade imbalance is basically a structural phenomenon resulting from the pivotal role played by China as the final assembly centre in East-Asia centered global production networks. Given the current state of China’s factor market conditions, US-China trade patterns are unlikely to change dramatically in the short to medium run.

Keywords: China; global production sharing; U.S.-China trade imbalance (search for similar items in EconPapers)
JEL-codes: F14 F23 O53 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2008
New Economics Papers: this item is included in nep-cna and nep-int
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:pas:papers:2008-22

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