This paper examines the implications of global production sharing for economic integration in East Asia, with emphasis on the behavior of trade flows in the wake of the 2008 global economic crisis. While trade in parts and components and final assembly within production networks (“network...

The industrial structures and strategy of the country, which exports parts and components, seem to have a significant effect on the pattern of production sharing of the country where assembly takes place. In the case of some East Asian countries, the pattern and the competitiveness in the...

We consider a mining or other extractive project, which is fulfilled on the basis of a production-sharing agreement. These agreements provide for production sharing on the basis of current IRR or current R-factor. The implications of using such production sharing mechanisms are studied with the...

This paper examines the implications of cross-border component sourcing and production networks for trade competitiveness and welfare. Offshore sourcing of components in which it has comparative disadvantage, enables a country to enhance its comparative advantage in the final product. This...

We combine input–output and bilateral trade data to compute the value added content of bilateral trade. The ratio of value added to gross exports (VAX ratio) is a measure of the intensity of production sharing. Across countries, export composition drives VAX ratios, with exporters of...

This study seeks to clarify what vertical specialization/fragmented production/production sharing is, how widespread it is, how it is organized, its driving forces, and what the policy implications are. It presents six country case studies ( USA, Japan, Germany, Brazil, China and South Africa )...

This paper investigates country and industry-level determinants of vertical specialization-based trade. Industries that engage in this pattern of trade are identified through their use of offshore assembly provisions in the US tariff code. Findings explain why industries engage in vertical...

The East Asian economic zone is well known for its highly integrated manufacturing system that was initialized and is driven by the market mechanism. As participants in a common production sharing network, East Asian economies are highly interdependent. Externally, advanced economies in the West...

This paper examines the implications of global production sharing for regional and global trade patterns in East Asia using a new data set culled from the UN trade database. It is found that, while ‘network trade’ has generally grown faster than total world trade in manufacturing, the degree...