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The Role of China, Japan, and Korea in Machinery Production Networks

Author

Listed:
  • OBASHI Ayako

    (University of Wisconsin and Keio University)

  • KIMURA Fukunari

    (Keio Univeristy and Economic Research Institute for ASEAN and East Asia)

Abstract

China, Japan, and Korea have been the three largest players in East Asian machinery production networks. This paper employs a new method of analysing finely disaggregated international trade data that applies the concept of zero trade flows, least-traded goods, and intensive/extensive margins of trade growth and scrutinises changes in the roles of China, Japan, and Korea in machinery production networks between 2007 and 2013. We find, first, that China became a dominant player in global machinery production networks in terms of both export values and the diversity and density of product-destination pairs. Second, the growth of Korea as machinery parts and components supplier was also salient and Korea’s dependency on China rose sharply. Third, Japan continued to stagnate and machinery production links between Korea and Japan weakened substantially.Length: 33 pages.

Suggested Citation

  • OBASHI Ayako & KIMURA Fukunari, 2016. "The Role of China, Japan, and Korea in Machinery Production Networks," Working Papers DP-2016-10, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:wpaper:dp-2016-10
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    File URL: http://www.eria.org/ERIA-DP-2016-10.pdf
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    Cited by:

    1. Ayako Obashi & Fukunari Kimura, 2017. "Deepening and Widening of Production Networks in ASEAN," Asian Economic Papers, MIT Press, vol. 16(1), pages 1-27, Winter/Sp.
    2. Heli Simola, 2018. "Chinese Services Gaining Significance in Global Production Chains," Asian Economic Papers, MIT Press, vol. 17(2), pages 50-64, Summer.
    3. Ayako Obashi & Fukunari Kimura, 2021. "New Developments in International Production Networks: Impact of Digital Technologies," Asian Economic Journal, East Asian Economic Association, vol. 35(2), pages 115-141, June.

    More about this item

    Keywords

    zero trade; intensive and extensive margins; least-traded goods; productdestination pairs; machinery industry; parts and components trade;
    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

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