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International Production and Distribution Networks in East Asia: Eighteen Facts, Mechanics, and Policy Implications

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  • Fukunari KIMURA

Abstract

International production/distribution networks in East Asia developed in the 1990s and after have distinctive features in their significance, extensiveness, and sophistication. This paper first lists “18 facts” on production/distribution networks in East Asia that have been identified by a number of studies using international trade data, microdata of Japanese multinational enterprises, and casual observations. It then presents a concept of two‐dimensional fragmentation as a starting point of theoretically formalizing the phenomena of fragmentation and agglomeration. It finally discusses the policy environment in which the formation of production/distribution networks has been accelerated and policy implications of the existence of such networks for economic integration in East Asia.

Suggested Citation

  • Fukunari KIMURA, 2006. "International Production and Distribution Networks in East Asia: Eighteen Facts, Mechanics, and Policy Implications," Asian Economic Policy Review, Japan Center for Economic Research, vol. 1(2), pages 326-344, December.
    • Handle: RePEc:bla:asiapr:v:1:y:2006:i:2:p:326-344
    DOI: 10.1111/j.1748-3131.2006.00039.x
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    References listed on IDEAS

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    3. Mitsuyo Ando & Fukunari Kimura, 2005. "The Formation of International Production and Distribution Networks in East Asia," NBER Chapters, in: International Trade in East Asia, pages 177-216, National Bureau of Economic Research, Inc.
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    5. Ito, Takatoshi & Rose, Andrew K. (ed.), 2005. "International Trade in East Asia," National Bureau of Economic Research Books, University of Chicago Press, number 9780226378961, July.
    6. Lionel Fontagné & Michael Freudenberg, 2002. "Long-term Trends in Intra-Industry Trade," Palgrave Macmillan Books, in: P. J. Lloyd & Hyun-Hoon Lee (ed.), Frontiers of Research in Intra-Industry Trade, chapter 8, pages 131-158, Palgrave Macmillan.
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    8. Ando, Mitsuyo, 2006. "Fragmentation and vertical intra-industry trade in East Asia," The North American Journal of Economics and Finance, Elsevier, vol. 17(3), pages 257-281, December.
    9. Akira Kohsaka, 2004. "New Development Strategies: Beyond the Washington Consensus," Palgrave Macmillan Books, in: Akira Kohsaka (ed.), New Development Strategies, chapter 1, pages 1-10, Palgrave Macmillan.
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