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Global Production Sharing and Sino–US Trade Relations

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  • Prema‐chandra Athukorala
  • Nobuaki Yamashita

Abstract

This paper examines Sino–US trade relations, focusing on the ongoing process of global production sharing, involving splitting of the production process into discrete activities that are then allocated across countries, and the resulting trade complementarities between the two countries in world manufacturing trade. The results suggest that the Sino–US 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.

Suggested Citation

  • Prema‐chandra Athukorala & Nobuaki Yamashita, 2009. "Global Production Sharing and Sino–US Trade Relations," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 17(3), pages 39-56, May.
    • Handle: RePEc:bla:chinae:v:17:y:2009:i:3:p:39-56
    DOI: 10.1111/j.1749-124X.2009.01149.x
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    References listed on IDEAS

    as
    1. Prema-chandra Athukorala & Jayant Menon, 2010. "Global Production Sharing, Trade Patterns and Determinants of Trade Flows," Departmental Working Papers 2010-06, The Australian National University, Arndt-Corden Department of Economics.
    2. Athukorala, Prema–Chandra & Menon, Jayant, 2010. "Global Production Sharing, Trade Patterns, and Determinants of Trade Flows in East Asia," Working Papers on Regional Economic Integration 41, Asian Development Bank.
    3. Hal Hill & Jayant Menon, 2011. "Reducing Vulnerability in Transition Economies: Crises and Adjustment in Cambodia," Departmental Working Papers 2011-08, The Australian National University, Arndt-Corden Department of Economics.
    4. Prema-chandra Athukorala, 2011. "Production Networks and Trade Patterns in East Asia: Regionalization or Globalization?," Asian Economic Papers, MIT Press, vol. 10(1), pages 65-95, Winter/Sp.
    5. Shiro Armstrong, 2010. "Taiwan's Asia Pacific Economic Strategies Post-ECFA," EABER Working Papers 22810, East Asian Bureau of Economic Research.
    6. Prema-chandra Athukorala, 2009. "Production Networks and Trade Patterns:East Asia in a Global Context," Departmental Working Papers 2009-15, The Australian National University, Arndt-Corden Department of Economics.
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    Citations

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    Cited by:

    1. Andrew Martin Fischer, 2010. "Is China turning Latin? China's balancing act between power and dependence in the lead up to global crisis," Journal of International Development, John Wiley & Sons, Ltd., vol. 22(6), pages 739-757.
    2. Nobuaki Yamashita & Isamu Yamauchi, 2020. "Innovation responses of Japanese firms to Chinese import competition," The World Economy, Wiley Blackwell, vol. 43(1), pages 60-80, January.
    3. Fischer, A.M., 2010. "Is China turning Latin?," ISS Working Papers - General Series 19431, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    4. Anura Ekanayake & Ratnakar Adhikari & Puspa Sharma & Paras Kharel, 2012. "Private sector in South Asia : Stumbling blocks or building blocks to regional integration?," Regional Economic Integration: Challenges for South Asia during turbulent times (Edited volume), in: Saman Kelegama (ed.), Regional Economic Integration : Challenges for South Asia during turbulent times (Edited volume), edition 1, volume 1, chapter 12, pages 213-224, South Asia Watch on Trade, Economics and Environment.
    5. Prema-chandra Athukorala, 2017. "China's evolving role in global production networks: implications for Trump's trade war," Departmental Working Papers 2017-08, The Australian National University, Arndt-Corden Department of Economics.
    6. Murat Arsel & Andrew M. Fischer, 2015. "Forum 2015," Development and Change, International Institute of Social Studies, vol. 46(4), pages 700-732, July.
    7. Athukorala, Prema–Chandra & Menon, Jayant, 2010. "Global Production Sharing, Trade Patterns, and Determinants of Trade Flows in East Asia," Working Papers on Regional Economic Integration 41, Asian Development Bank.
    8. Prema-chandra Athukorala & Hal Hill, 2010. "Asian trade: long-term patterns and key policy issues," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 24(2), pages 52-82, November.
    9. Peter Drahos & Christian Downie, 2017. "Regulatory Unilateralism: Arguments for Going It Alone on Climate Change," Global Policy, London School of Economics and Political Science, vol. 8(1), pages 32-40, February.
    10. Peter B. Dixon & Maureen Rimmer, 2019. "Integrating a Global Supply Chain Model With a Computable General Equilibrium Model," Centre of Policy Studies/IMPACT Centre Working Papers g-292, Victoria University, Centre of Policy Studies/IMPACT Centre.
    11. Belén González Díaz & Leticia Blázquez, 2013. "International Automotive Production Networks: How the web comes together," Working Papers. Serie EC 2013-05, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    12. Prema-chandra Athukorala & Peter B. Dixon & Maureen T. Rimmer, 2017. "Global Supply Chains: towards a CGE analysis," Centre of Policy Studies/IMPACT Centre Working Papers g-281, Victoria University, Centre of Policy Studies/IMPACT Centre.
    13. Yiping Huang & Bijun Wang, 2011. "From the Asian Miracle to an Asian Century? Economic Transformation in the 2000s and Prospects for the 2010s," RBA Annual Conference Volume (Discontinued), in: Hugo Gerard & Jonathan Kearns (ed.),The Australian Economy in the 2000s, Reserve Bank of Australia.
    14. Prema‐chandra Athukorala & Peter B. Dixon & Maureen T. Rimmer, 2018. "Global Supply Chains: Towards A Computable General Equilibrium Analysis," Economic Papers, The Economic Society of Australia, vol. 37(3), pages 198-219, September.

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