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Contract Manufacturing In Late Industrialization

Author

Listed:
  • AN-CHI TUNG

    (Institute of Economics, Academia Sinica, 128, Sec. 2 Academia Road, Taipei, Taiwan 11529, Taiwan)

  • HENRY WAN

    (Economics Department, 470 Uris Hall, Cornell University, Ithaca, N.Y. 14853, USA)

Abstract

Contract manufacturing is the catalyst shaping the world economy under globalization. Affirming the dominance of the open network in organizing worldwide value chains, it transformed Japan and US into trade partners rather than rivals. It allows firms like Apple, Nokia and Sony to outsource production tasks to People's Republic of China, which serves as the world's workplace, and provides a niche for Singapore and Taiwan in late industrialization. Tapping into the economy of scope from the pooling of capacity and information, contract manufacturers like Foxconn and Flextronics provide durable and significant benefit for their economies of domicile, hence a novel niche in late industrialization.

Suggested Citation

  • An-Chi Tung & Henry Wan, 2012. "Contract Manufacturing In Late Industrialization," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 57(04), pages 1-15.
    • Handle: RePEc:wsi:serxxx:v:57:y:2012:i:04:n:s0217590812500233
    DOI: 10.1142/S0217590812500233
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    References listed on IDEAS

    as
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    3. Helpman, Elhanan, 2011. "Understanding Global Trade," Economics Books, Harvard University Press, number 9780674060784, Spring.
    4. Alice H. Amsden, 2007. "Escape from Empire: The Developing World's Journey through Heaven and Hell," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262012340, April.
    5. Steinfeld, Edward, 2010. "Playing Our Game: Why China's Rise Doesn't Threaten the West," OUP Catalogue, Oxford University Press, number 9780195390650.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Contract manufacturing; globalization; open network; worldwide value chain; capacity pooling; information pooling; late industrialization; catalysis; L24; L22; L14; F23; D21; O14;
    All these keywords.

    JEL classification:

    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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