We use cookies on this website to give you a better user experience. By continuing to browse the site, you are agreeing to our use of cookies. Learn more

East Asian Production Networks Go Beyond the Gravity Prediction

East Asian Production Networks Go Beyond the Gravity Prediction
Date:
21 March 2022
Authors:
Mitsuyo Ando, Fukunari Kimura, Kenta Yamanouchi
Tags:
East Asia, industry and manufacturing, Supply Chain

Print Article:

This paper provides empirical evidence that supports the continuing importance of machinery international production networks (IPNs) in East Asia. We first confirm their robustness and resilience, even during the coronavirus disease (COVID-19) pandemic, as well as the significance of East Asian countries as suppliers of machinery final products and parts and components for the world. Then, we demonstrate how deeply East Asian countries are committed to machinery IPNs by applying a gravity equation to pre-pandemic bilateral machinery trade and comparing actual values with fitted values of the estimated equation. The gravity estimation exercise indicates that machinery trade is basically regional – within Factory Asia, Factory America, and Factory Europe – but Factory Asia also has strong inter-regional linkages. It also verifies that the Association of Southeast Asian Nations (ASEAN) has played an important role in Factory Asia, going far beyond the gravity prediction, for the development of machinery IPNs.

East Asian Production Networks Go Beyond the Gravity Prediction

Search ERIA.org

Latest Multimedia

Indonesia's ASEAN Chairmanship 2023 High-Level Policy Dialogue: ASEAN Digital Community 2045

ERIA Knowledge Lab Discusses Scaling Up Innovation and Digital Technology Ecosystem

Is ASEAN Ready for Electric Vehicles? | ASEAN Insights Podcast

Related Articles

global value chains, Trade, Labour and Migration, industry and manufacturing, Routledge
23 February 2017
Editor(s)/Author(s): Lili Yan Ing, Fukunari Kimura, Lili Yan Ing, Fukunari Kimura, Javier Lopez-Gonzalez, Przemyslaw Kowalski, Miaojie Yu, Xiaomin Cui, Chandra Triputra, Tham Siew Yean, Andrew Jia Yi Kam, Rafaelita Aldaba, Mun-Heng Toh, Patarapong Intarakumnerd, Tri Thanh Vo, Anh Duong Nguyen, Trinh Bui, Hal Hill, Archanun Kohpaiboon, Xiao Jiang, Jose Caraballo, Siwage Dharma Negara, Ben Shepherd
The book answers the recently topical questions of how China's processed trade affects the trade of Southeast Asia. What is Southeast[...]
3 March 2016
Editor(s)/Author(s): Ayako Obashi, Fukunari Kimura
AbstractChina, Japan, and Korea have been the three largest players in East Asian machinery production networks. This paper employs a new[...]