King's College London

Research portal

Production fragmentation, upstreamness, and value added: Evidence from Factory Asia 1990–2005

Research output: Contribution to journalArticle

Original languageEnglish
Pages (from-to)1-9
Number of pages9
JournalJOURNAL OF THE JAPANESE AND INTERNATIONAL ECONOMIES
Volume42
Early online date31 Aug 2016
DOIs
Publication statusPublished - Dec 2016

Documents

King's Authors

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.

Download statistics

No data available

View graph of relations

© 2018 King's College London | Strand | London WC2R 2LS | England | United Kingdom | Tel +44 (0)20 7836 5454