Abstract
We exploit the recent release of the 2005 Asian Input-Output Matrix to dress a picture of the geographic fragmentation of value added in Factory Asia from 1990 to 2005. We document 3 stylized facts. The first is that the average share of foreign value added embedded in production rose by about 7 percentage points between 1990 and 2005, from 9% to 16%. The second is that, contrary to popular belief, China has emerged as a major source of value added to other Factory Asia countries’ production. Third, we find empirical support for the smile-curve hypothesis. Country-industries at the upstream and downstream extremities of the supply chain embed a larger share of value added than those with intermediate levels of upstreamness.
Original language | English |
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Pages (from-to) | 1-9 |
Number of pages | 9 |
Journal | JOURNAL OF THE JAPANESE AND INTERNATIONAL ECONOMIES |
Volume | 42 |
Early online date | 31 Aug 2016 |
DOIs | |
Publication status | Published - Dec 2016 |
Keywords
- Factory Asia
- Supply chains
- Upstreamness