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Production Networks and Unbundling: Reformulating the Conceptual Framework in Theory, Empirics, and Policy Discussion

Author

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  • Fukunari Kimura

    (Professor, Faculty of Economics, Keio University and Chief Economist, Economic Research Institute for ASEAN and East Asia (ERIA))

Abstract

This paper employs the concept of “unbundling” proposed by Baldwin (2016) and provides an overview of the dynamic transformation of the pattern of international division of labor in East Asia from the viewpoint of theory, empirics, and policy discussion. East Asia has led the world in aggressively utilizing the second unbundling, or the mechanics of international production networks centered by machinery industries. Yet there is still ample room for expanding and deepening the involvement in such a pattern of international division of labor. At the same time, a wave of digital technology has arrived in East Asia, and the application of new information and communication technology (ICT) and the third unbundling have become important policy agenda items. This paper concisely presents the conceptual framework of “unbundling,” particularly the second and the third, and discusses a number of issues on empirical studies and policy discussion over development strategies and required sets of policies.

Suggested Citation

  • Fukunari Kimura, 2020. "Production Networks and Unbundling: Reformulating the Conceptual Framework in Theory, Empirics, and Policy Discussion," Public Policy Review, Policy Research Institute, Ministry of Finance Japan, vol. 16(1), pages 1-16, February.
    • Handle: RePEc:mof:journl:ppr16_01_01
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    File URL: http://www.mof.go.jp/english/pri/publication/pp_review/ppr16_01_01.pdf
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    Cited by:

    1. Tanaka,Kiyoyasu, 2024. "Face-to-Face Communication and Production Networks: Evidence from First Trans-Siberian Flights," IDE Discussion Papers 918, Institute of Developing Economies, Japan External Trade Organization(JETRO).

    More about this item

    Keywords

    international division of labor; connectivity; digital economy; information and communication technology (ICT); development strategies;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General

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