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Production networks in the Asia-Pacific region : facts and policy implications

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  • Hiratsuka, Daisuke

Abstract

Production networks have been extensively developed in the Asia-Pacific region. This paper employs two micro-level approaches, case studies and econometric analysis, using JETRO's firm surveys which investigate Japanese affiliates operating in Southeast Asia. These two approaches found that production networks have extended, involving suppliers, across various nations in the Asia-Pacific region, and that production bases in host and home countries have different roles. A home country serves as a headquarters with services such as R&D, international marketing, and financing. A high tariff policy in a host country may foster domestic industries through the expansion of procurement from domestic suppliers, either indigenous or foreign, but it may discourage a country from becoming an export platform.

Suggested Citation

  • Hiratsuka, Daisuke, 2011. "Production networks in the Asia-Pacific region : facts and policy implications," IDE Discussion Papers 315, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper315
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    References listed on IDEAS

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    Cited by:

    1. Juan Felipe López Aymes, 2014. "Encadenamientos productivos en el sureste de Asia: integración a las redes globales con empresas locales," Revista Digital Mundo Asia Pacífico, Universidad EAFIT, vol. 4(5), pages 24-51, December.
    2. Masahiro Kawai & Ganeshan Wignaraja, 2014. "Policy challenges posed by Asian free trade agreements: a review of the evidence," Chapters, in: Richard Baldwin & Masahiro Kawai & Ganeshan Wignaraja (ed.), A World Trade Organization for the 21st Century, chapter 8, pages 182-238, Edward Elgar Publishing.
    3. Kornkarun Cheewatrakoolpong & Chayodom Sabhasri & Nath Bunditwattanawong, 2013. "Impact of the ASEAN Economic Community on ASEAN Production Networks," Trade Working Papers 23393, East Asian Bureau of Economic Research.
    4. Claes G. Alvstam & Erja Kettunen & Patrik Ström, 2017. "The service sector in the free-trade agreement between the EU and Singapore: closing the gap between policy and business realities," Asia Europe Journal, Springer, vol. 15(1), pages 75-105, March.
    5. Vladyslav Bolhov & Inna Akhnovska & Marina Savchenkova & Olga Shkurenko, 2021. "Influence of Transnational Corporations on the Global Economic Order," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 22-38.
    6. Anna H. Jankowiak, 2018. "Transnational Corporations and Business Networks in ASEAN: Building Partnership in the Asia– Pacific Region," International Business Research, Canadian Center of Science and Education, vol. 11(1), pages 230-244, January.

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    More about this item

    Keywords

    Southeast Asia; Japan; Foreign affiliated firm; Industrial management; Production management; International economic relations; Skilled differentiation; High tariff policy; Export-platform FDI;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • 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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