In this paper we argue that export data are an inadequate tool to measure a country's international competitiveness when external trade is dominated by export-processing trade. Export data de not necessarily reflect the value produced in an exporting country, but rather capture the gross value...

This paper studies the growth and determinants of information technology (IT) trade in the Asia-Pacific region. We argue that the rise of IT trade must be understood within the context of increasing vertical fragmentation of production processes that has occurred over the past two decades. To...

In many globalized industries, the recent wave of vertical outsourcing seems to have co-evolved with increased horizontal consolidation in the component sector. To account for this phenomenon, I build an industry-equilibrium model in which the boundaries of the firm are endogenous in both the...

Global value chains (GVCs) are a powerful vehicle through which multinational enterprises (MNEs) can help address the grand challenges that humanity faces. But optimally utilizing GVCs for sustainability requires fundamental changes in corporate behaviour. In this paper we expound the concept of...

The growth of East Asia’s intra-regional trade is driven largely by increased component trade within global electronics production networks. Data on both electronics trade and production elucidate a pattern of specialization in which upper- and middle-income countries produce sophisticated...

In recent decades, the global electronics industry has experienced a large reorganization. U.S. electronics firms have on a large scale off-shored and outsourced their manufacturing activities. Japanese electronics firms have offshored a large portion of their manufacturing, but have remained...