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Mapping fragmentation: electronics and automobiles in East Asia and Latin America

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Author Info
Sanjaya Lall
Manuel Albaladejo
Jinkang Zhang

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Abstract

"Fragmentation", the relocation of processes or functions across countries in response to cost and other differences, has important implications for development. We discuss the drivers of fragmentation and map it for electronics and automotives in East Asia (EA) and Latin America. For technical reasons, electronics is fragmenting faster world-wide than the auto industry. Electronics networks are more advanced, widespread and integrated in EA than Latin America and the Caribbean (LAC), and are largely responsible for EA's rapid export growth. The auto network is more advanced in LAC but is slower growing and is not integrated into a regional system. Apart from Mexico, LAC lacks an electronics network, partly accounting for the region's weak export performance. We offer insights into the following: Why do industries fragment differently? How can fragmentation be measured? Why does fragmentation in developing countries concentrate on EA and LAC? Why has fragmentation evolved differently in these two regions? Can other developing regions attract and benefit from fragmentation?

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Oxford Development Studies.

Volume (Year): 32 (2004)
Issue (Month): 3 ()
Pages: 407-432
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Handle: RePEc:taf:oxdevs:v:32:y:2004:i:3:p:407-432

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Ng, Francis & Yeats, Alexander, 1999. "Production sharing in East Asia : who does what for whom, and why?," Policy Research Working Paper Series 2197, The World Bank. [Downloadable!]
  2. Ernst, Dieter & Kim, Linsu, 2002. "Global production networks, knowledge diffusion, and local capability formation," Research Policy, Elsevier, vol. 31(8-9), pages 1417-1429, December. [Downloadable!] (restricted)
  3. repec:rus:hseeco:123689 is not listed on IDEAS
  4. Dieter Ernst, 2000. "Carriers of Cross-Border Knowledge Diffusion: Information Technology and Global Production Networks," Economics Study Area Working Papers 03, East-West Center, Economics Study Area. [Downloadable!]
  5. Ng, Francis & Yeats, Alexander, 2003. "Major trade trends in East Asia : what are their implications for regional cooperation and growth," Policy Research Working Paper Series 3084, The World Bank. [Downloadable!]
  6. Hummels, David & Ishii, Jun & Yi, Kei-Mu, 2001. "The nature and growth of vertical specialization in world trade," Journal of International Economics, Elsevier, vol. 54(1), pages 75-96, June. [Downloadable!] (restricted)
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  7. Francoise Lemoine & Deniz Unal-Kesenci, 2002. "China in the International Segmentation of Production Processes," Working Papers 2002-02, CEPII research center. [Downloadable!]
  8. Gereffi, Gary, 1999. "International trade and industrial upgrading in the apparel commodity chain," Journal of International Economics, Elsevier, vol. 48(1), pages 37-70, June. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Yose Rizal Damuri & Raymond Atje & Arya B. Gaduh, 2006. "Integration and Trade Specialization in East Asia," Trade Working Papers 694, East Asian Bureau of Economic Research. [Downloadable!]
    Other versions:
  2. Sanjaya Lall (QEH) and John Weiss, . "China's Competitive Threat to Latin America: An Analysis for 1990-2002," QEH Working Papers qehwps120, Queen Elizabeth House, University of Oxford. [Downloadable!]
    Other versions:
  3. Kemal Türkcan, . "Vertical Intra-Industry Trade: An Empirical Examination of the Austria’s Auto-Parts Industry," FIW Working Paper series 030, FIW. [Downloadable!]
  4. Martin Srholec, 2007. "High-Tech Exports from Developing Countries: A Symptom of Technology Spurts or Statistical Illusion?," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 143(2), pages 227-255, July. [Downloadable!] (restricted)
    Other versions:
  5. Amador, João & Cabral, Sónia, 2008. "Vertical specialization across the world: a relative measure," MPRA Paper 9618, University Library of Munich, Germany. [Downloadable!]
  6. Amador, João & Cabral, Sónia, 2008. "International fragmentation of production in the Portuguese economy: What do different measures tell us?," MPRA Paper 9783, University Library of Munich, Germany. [Downloadable!]
  7. Sanjaya Lall (QEH), John Weiss and Jinkang Zhang, . "The 'Sophistication' Of Exports: A New Measure Of Product Characteristics," QEH Working Papers qehwps123, Queen Elizabeth House, University of Oxford. [Downloadable!]
  8. Sanjaya Lall (QEH), . "Is African Industry Competing?," QEH Working Papers qehwps122, Queen Elizabeth House, University of Oxford. [Downloadable!]
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