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Investigating ASEAN’s Participation in Global Value Chains: Production Fragmentation and Regional Integration

Author

Listed:
  • SHENG ZHONG

    (Energy Studies Institute, National University of Singapore, Singapore)

  • BIN SU

    (Energy Studies Institute, National University of Singapore, Singapore)

Abstract

This paper focuses on the Association of Southeast Asian Nations (ASEAN)—a major final assembler in production—where studies and evidence on the role of the region in global value chains are limited. We seek to provide new evidence regarding the extent and patterns of international fragmentation in ASEAN. To do so, we derive the foreign value-added shares of final products for all global value chains of ASEAN. Using the Asian Development Bank’s multiregional input–output tables for 2000–2017, we document a series of stylized facts. The results show declining foreign value-added shares in ASEAN. Regional economic integration within ASEAN has increased, while value-added contributions vary widely across its members. We find evidence of increasing value-added contributions from emerging economies to ASEAN, whereas the contributions from advanced economies have declined.

Suggested Citation

  • Sheng Zhong & Bin Su, 2021. "Investigating ASEAN’s Participation in Global Value Chains: Production Fragmentation and Regional Integration," Asian Development Review (ADR), World Scientific Publishing Co. Pte. Ltd., vol. 38(02), pages 159-188, September.
  • Handle: RePEc:wsi:adrxxx:v:38:y:2021:i:02:n:s0116110521500025
    DOI: 10.1142/S0116110521500025
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    More about this item

    Keywords

    ASEAN; global value chains; production fragmentation; regional integration;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management

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