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What Are the Opportunities and Challenges for ASEAN?

Author

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  • Mitsuyo ANDO

    (Keio University)

  • Fukunari KIMURA

    (Economic Research Institute for ASEAN and East Asia (ERIA))

Abstract

This paper attempts to investigate the features of development and restructuring patterns of regional production/distribution networks, mainly in machinery sectors, using finely disaggregated international trade data. More specifically, the paper first studies the developing patterns of machinery trade for the East Asian countries, then examines those patterns in terms of the extensive margin in order to investigate the extent and depth of the networks, and demonstrate how the networks and industrial shape are being restructured. The paper also presents some evidences on the expanding connectivity of production networks in East Asia from regional to global by shedding lights on the link between East Asia and Europe via CEE countries and concludes with policy implications on challenges in taking advantages of the mechanics of the 2nd unbundling for each ASEAN member state and ASEAN as a whole.

Suggested Citation

  • Mitsuyo ANDO & Fukunari KIMURA, 2013. "What Are the Opportunities and Challenges for ASEAN?," Working Papers DP-2013-31, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:wpaper:dp-2013-31
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    1. Siow Yue Chia & Song Hong & Stephen Howes & Paul Wyrwoll & Vo Hai Minh & Sun Xuegong & Saroj Kumar Mohanty & Tulus T.H Tambunan & Somchai Jitsuchon & Larry Strange & Chang Jae Lee & Zhang Yunling & Mi, . "Moving Toward A New Development Model For East Asia-The Role of Domestic Policy and Regional Cooperation," Books, Economic Research Institute for ASEAN and East Asia (ERIA), number 2011-rpr-10 edited by Zhang Yunling & Fukunari Kimura & Sothea Oum, December.
    2. 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.
    3. Alan V. Deardorff, 2011. "Fragmentation in simple trade models," World Scientific Book Chapters, in: Robert M Stern (ed.), Comparative Advantage, Growth, And The Gains From Trade And Globalization A Festschrift in Honor of Alan V Deardorff, chapter 16, pages 165-181, World Scientific Publishing Co. Pte. Ltd..
    4. Ando, Mitsuyo & Kimura, Fukunari, 2013. "Production Linkage of Asia and Europe via Central and Eastern Europe," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 28, pages 204-240.
    5. Mitsuyo Ando & Sven W. Arndt & Fukunari Kimura, 2006. "Production Networks in East Asia : Strategic Behavior by Japanese and U.S. firms," Microeconomics Working Papers 21886, East Asian Bureau of Economic Research.
    6. Baldwin, Richard, 2011. "21st century regionalism: Filling the gap between 21st century trade and 20th century trade rules," WTO Staff Working Papers ERSD-2011-08, World Trade Organization (WTO), Economic Research and Statistics Division.
    7. 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.
    8. Kimura, Fukunari & Ando, Mitsuyo, 2005. "Two-dimensional fragmentation in East Asia: Conceptual framework and empirics," International Review of Economics & Finance, Elsevier, vol. 14(3), pages 317-348.
    9. Mitsuyo ANDO, 2010. "Machinery Trade in East Asia, and the Global Financial Crisis," Working Papers DP-2010-10, Economic Research Institute for ASEAN and East Asia (ERIA).
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    Cited by:

    1. Yoshifumi Fukunaga & Ponciano Intal & Fukunari Kimura & Phoumin Han & Philippa Dee & Narjoko Dionisius & OUM Sothea, . "ASEAN Rising: ASEAN and AEC Beyond 2015," Books, Economic Research Institute for ASEAN and East Asia (ERIA), number 2013-rpr-01 edited by Yoshifumi Fukunaga & Ponciano Intal, Jr. & Fukunari Kimura & Phoumin Han & Philippa Dee & Narjoko Di.
    2. repec:era:wpaper:dp-2015-62 is not listed on IDEAS
    3. Yoshifumi Fukunaga & Ponciano Intal & Fukunari Kimura & Phoumin Han & Philippa Dee & Narjoko Dionisius & OUM Sothea, . "ASEAN Rising: ASEAN and AEC Beyond 2015," Books, Economic Research Institute for ASEAN and East Asia (ERIA), number 2013-asean-rising edited by Yoshifumi Fukunaga & Ponciano Intal, Jr. & Fukunari Kimura & Phoumin Han & Philippa Dee & Narjoko Di, December.

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    More about this item

    Keywords

    international production networks; machinery trade; East Asia; the extensive margin;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production

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