Trade patterns and global value chains in East Asia: - IDE-JETRO

More documents

Recommendations

Info

Trade Patterns and Global Value Chains in East AsiaAcknowledgementsThis publication is the result of a cooperative effortbetween the WTO and IDE-JETRO. The writing of thebook and the preparation of the various statistical inputshas involved staff from both organizations.Many people provided assistance during its preparation.Special thanks are addressed to IDE-JETRO for havingprovided the Asian International Input-Output (AIO)Tables used for the compilation of many indicators shownin the publication. Acknowledgements are also due toAnthony Martin and Helen Swain of the WTO Informationand External Relations Division for their commentsand suggestions. We are also grateful to the WTODocuments Reproduction and Distribution Section.About the editors and contributorsThe publication was prepared and edited under thedirection of Hubert Escaith, WTO Chief Statistician,and Satoshi Inomata, Director of the International Input-Output Analysis Group, IDE-JETRO.Christophe Degain and Andreas Maurer were responsiblefor the technical supervision of the project. ChristopheDegain also managed the publication process, assistedby Antonella Liberatore and Myriam Nafir.Contributors to the initial manuscripts includeChristophe Degain (Chapters I, VIII, IX), Florian Eberth(III, VIII, IX), Hubert Escaith (I, IV, VI), Farah Farooq (III,V), Satoshi Inomata (VI, VII, X), Andreas Maurer (II, V),Adelina Mendoza (IV), Bo Meng (X) and Bekele Tamenu(II, III).Giacomo Frigerio was responsible for the graphic designand layout of the publication.DisclaimerThis publication and any opinions reflected therein are the sole responsibility of the WTO Secretariat and IDE-JETRO.They do not express the opinions or views of WTO members or of institutional stakeholders of IDE-JETRO.WTO members are frequently referred to as “countries”, although some members are not countries in the usualsense of the word but are officially “customs territories”. Geographical and other groupings in this report do notimply any expression of opinion by the authors concerning the status of any country or territory, the delimitation of itsfrontiers or the rights or obligations of any WTO member in respect of WTO agreements. The colours, boundaries,denominations, and classifications used in the maps which feature in this publication do not imply any judgement ofthe legal or other status of any territory, nor any endorsement or acceptance of any boundary.Throughout this report, the Hong Kong Special Administrative Region of China, the Republic of Korea and theSeparate Customs Territory of Taiwan, Penghu, Kinmen and Matsu are referred to as Hong Kong (China), Korea,Rep. of (in some figures), and Chinese Taipei, respectively.Note on geographical coverageEast Asia in this publication covers China, Hong Kong (China), Indonesia, Japan, the Republic of Korea, Macao (China),Malaysia, the Philippines, Singapore, Chinese Taipei, Thailand and Viet Nam. India is also included in the study. Dependingon data availability, the country coverage can vary across chapters. See Annex 1 for details on the composition ofgeographical and economic groupings used in the publication.Statistical noteTrade data sourced from statistical frameworks such as the balance of payments (BOP), customs or input-output tablesdo not necessarily match each other due to differences in concepts.2
ForewordThis book is the result of cooperation between IDE-JETRO and the WTO in analysing a fundamentalchange that has been taking place in the structure ofinternational trade. This change is referred to in variousways: vertical specialization, production sharing, trade intasks, or supply chain trade, to cite just a few. What theseall indicate is that much of trade these days comprisescomponents or intermediate goods and services thatpass from economy to economy before becoming part ofa final traded product.This change has many implications for the way weunderstand trade policy. The distinction between “them”and “us” that has traditionally defined our way of thinkingabout imports and exports is increasingly outmoded.Products are no longer “made in Japan”, or “made inFrance”; they are truly “made in the world”. This newreality has profound implications on several counts. Inparticular, it redefines the nature of trade relations that arenow characterized by a much closer inter-relationship.In order to understand fully the true nature of these newtrading interactions, and the actual contribution of tradeto national economies, we need to promote a conceptualand statistical shift in the way trade is most commonlyperceived in policy debates. The present research buildson complementary programmes developed separately atIDE-JETRO, with the construction of international inputoutputmatrices, and at WTO, with the measurement oftrade in value added. By combining the expertise anddata available in both organizations, this book illustrateshow the conjunction of technical, institutional and politicalchanges in East Asia in the past 30 years has led to theemergence of new production and trade networks.success story was the result of a close partnershipbetween private and public sectors, the latter facilitatingthe work of the former. Building these industrialrelationships also paved the way for the emergence ofdeeper regional integration.Besides analysing the new trading relations frominternational and regional perspectives, the book alsoprovides interesting findings on the impact of internationaltrade on domestic economies. The role of trade ingenerating employment opportunities is reviewed, andshows, using the emblematic case of China, how anexport-led development strategy, initially focused on afew industrial coastal zones, was able to progressivelyinclude the rest of the economy.East Asia has been at the heart of the new model governingglobal manufacturing and international trade. It providesa natural case study to explore the contours of this newterritory. But the relevance of the study transcends theregional dimension, and we hope that analysts and policymakers from other regions, especially in the developingworld, will read these results with interest and adaptthem to their own national and regional contexts.Pascal LamyWTO Director-GeneralTakashi ShiraishiIDE-JETRO PresidentThe report makes it clear that business opportunitiesin developing countries have not only been linked tochanges in the global manufacturing model, spurredby the United States and Japan, but have also beenstimulated by governments in developing countries.These governments have invested massively to providethe necessary transportation and telecommunicationinfrastructure, while facilitating trade through variousinstitutional and administrative improvements. The Asian3
Page 6: Trade Patterns and Global Value Cha
Page 9 and 10: Vertical specialization, an indicat
Page 11 and 12: I. From massdemand to globalsupply
Page 15: Box 2. About the verticality of pro
Page 19: EndnotesI. From massdemand to globa
Page 23 and 24: B. Processing zones in developing c
Page 25 and 26: China’s customs trade figures sho
Page 27 and 28: Figure 4Hong Kong’s (China) impor
Page 29 and 30: EndnotesI. From massdemand to globa
Page 34 and 35: Trade Patterns and Global Value Cha
Page 36: Trade Patterns and Global Value Cha
Page 41 and 42: B. Applied tariffs in Asia are low
Page 43 and 44: Bound tariffs serve to protect expo
Page 45 and 46: D. Tariffs in Asia vary significant
Page 47 and 48: Figure 9Effective protection rate (
Page 49 and 50: EndnotesI. From massdemand to globa
Page 53 and 54:
I. From massdemand to globalsupply
Page 55 and 56:
Figure 4FDI inflows received by sel
Page 57 and 58:
C. Foreign direct investment: From
Page 59 and 60:
EndnotesI. From massdemand to globa
Page 61 and 62:
Page 63 and 64:
Figure 1Industrial specialization o
Page 65 and 66:
Figure 3The skyline charts of the c
Page 67 and 68:
The Republic of Korea, Chinese Taip
Page 69 and 70:
Figure 5Development of cross-nation
Page 71 and 72:
Table 2 shows disaggregated results
Page 73 and 74:
Figure 7Labour content of net trade
Page 75 and 76:
Page 77 and 78:
Figure 1Evolution of regional produ
Page 79 and 80:
Due to their relative size, other e
Page 81 and 82:
Page 83 and 84:
B. Intermediate goods drive world t
Page 85 and 86:
As shown in Figure 6, intermediate
Page 87 and 88:
D. Asia imports more intermediate g
Page 89 and 90:
E. Intra-Asian trade in intermediat
Page 91 and 92:
G. Towards more complex intermediat
Page 93 and 94:
EndnotesI. From massdemand to globa
Page 96 and 97:
Trade Patterns and Global Value Cha
Page 98 and 99:
Page 100 and 101:
Page 102 and 103:
Page 104 and 105:
Page 106 and 107:
Page 108 and 109:
Page 110 and 111:
Page 112 and 113:
Page 114 and 115:
Page 116 and 117:
Page 118 and 119:
Page 120 and 121:
Page 122 and 123:
Page 124 and 125:
Page 126 and 127:
Page 128 and 129:
Page 130 and 131:
Page 132:
The increasing internationalization
show all

Trade patterns and global value chains in East Asia: - IDE-JETRO

Create successful ePaper yourself

Delete template?

Save as template?