Mexico, Brazil and Chile : potential links with China and South Korea

K. C. FUNG, Hsiang-Chih HWANG, Jesús SEADE, Rocky YUNG

Research output: Journal PublicationsJournal Article (refereed)

Abstract

Purpose In this paper, the authors aim to examine trade in parts and components of Mexico, Chile and Brazil, focusing in particular on trade of television parts (SITC 7711) and semiconductors (SITC 7763) with China and South Korea. They also study the impact of foreign direct investment (FDI) on supply chain activities. Design/methodology/approach The authors use sub-categories of trade data to look at export and import of parts and components involving China, South Korea, Mexico, Brazil and Chile. They also use two-stage regressions to examine the impact of FDI on supply chain trade. Findings The authors found preliminary evidence that there may be early signs of an emerging Trans-Pacific production network between these three Latin American economies and the China-based and South Korea-based East Asian supply chains. The authors argue that this budding network will improve economic welfare. To deepen the Trans-Pacific supply chain, it would be desirable for China and South Korea to consider joining the Trans-Pacific Partnership (TPP). In addition, FDI enhances trade in components. Practical implications To deepen the Trans-Pacific supply chain, it would be desirable for China and South Korea to consider joining the TPP. In addition, it would be beneficial for these Latin American economies to encourage more direct investment in infrastructure and in manufacturing facilities from Asia. Originality/value This paper is one of the earliest research papers examining the Trans-Pacific supply chain, linking China, South Korea with Mexico, Brazil and Chile. The authors also study the impact of FDI on supply chain activities.
Original languageEnglish
Pages (from-to)190-212
Number of pages23
JournalJournal of Chinese Economic and Foreign Trade Studies
Volume9
Issue number3
DOIs
Publication statusPublished - 1 Jan 2016

Fingerprint

South Korea
Mexico
Brazil
China
Chile
Supply chain
Foreign direct investment
Asia
Design methodology
Import
Direct investment
Semiconductors
Production networks
Economic welfare
Manufacturing

Keywords

  • Brazil
  • Chile
  • China
  • Mexico
  • South Korea
  • Supply chains

Cite this

FUNG, K. C. ; HWANG, Hsiang-Chih ; SEADE, Jesús ; YUNG, Rocky. / Mexico, Brazil and Chile : potential links with China and South Korea. In: Journal of Chinese Economic and Foreign Trade Studies. 2016 ; Vol. 9, No. 3. pp. 190-212.
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Mexico, Brazil and Chile : potential links with China and South Korea. / FUNG, K. C.; HWANG, Hsiang-Chih; SEADE, Jesús; YUNG, Rocky.

In: Journal of Chinese Economic and Foreign Trade Studies, Vol. 9, No. 3, 01.01.2016, p. 190-212.

Research output: Journal PublicationsJournal Article (refereed)

TY - JOUR

T1 - Mexico, Brazil and Chile : potential links with China and South Korea

AU - FUNG, K. C.

AU - HWANG, Hsiang-Chih

AU - SEADE, Jesús

AU - YUNG, Rocky

PY - 2016/1/1

Y1 - 2016/1/1

N2 - Purpose In this paper, the authors aim to examine trade in parts and components of Mexico, Chile and Brazil, focusing in particular on trade of television parts (SITC 7711) and semiconductors (SITC 7763) with China and South Korea. They also study the impact of foreign direct investment (FDI) on supply chain activities. Design/methodology/approach The authors use sub-categories of trade data to look at export and import of parts and components involving China, South Korea, Mexico, Brazil and Chile. They also use two-stage regressions to examine the impact of FDI on supply chain trade. Findings The authors found preliminary evidence that there may be early signs of an emerging Trans-Pacific production network between these three Latin American economies and the China-based and South Korea-based East Asian supply chains. The authors argue that this budding network will improve economic welfare. To deepen the Trans-Pacific supply chain, it would be desirable for China and South Korea to consider joining the Trans-Pacific Partnership (TPP). In addition, FDI enhances trade in components. Practical implications To deepen the Trans-Pacific supply chain, it would be desirable for China and South Korea to consider joining the TPP. In addition, it would be beneficial for these Latin American economies to encourage more direct investment in infrastructure and in manufacturing facilities from Asia. Originality/value This paper is one of the earliest research papers examining the Trans-Pacific supply chain, linking China, South Korea with Mexico, Brazil and Chile. The authors also study the impact of FDI on supply chain activities.

AB - Purpose In this paper, the authors aim to examine trade in parts and components of Mexico, Chile and Brazil, focusing in particular on trade of television parts (SITC 7711) and semiconductors (SITC 7763) with China and South Korea. They also study the impact of foreign direct investment (FDI) on supply chain activities. Design/methodology/approach The authors use sub-categories of trade data to look at export and import of parts and components involving China, South Korea, Mexico, Brazil and Chile. They also use two-stage regressions to examine the impact of FDI on supply chain trade. Findings The authors found preliminary evidence that there may be early signs of an emerging Trans-Pacific production network between these three Latin American economies and the China-based and South Korea-based East Asian supply chains. The authors argue that this budding network will improve economic welfare. To deepen the Trans-Pacific supply chain, it would be desirable for China and South Korea to consider joining the Trans-Pacific Partnership (TPP). In addition, FDI enhances trade in components. Practical implications To deepen the Trans-Pacific supply chain, it would be desirable for China and South Korea to consider joining the TPP. In addition, it would be beneficial for these Latin American economies to encourage more direct investment in infrastructure and in manufacturing facilities from Asia. Originality/value This paper is one of the earliest research papers examining the Trans-Pacific supply chain, linking China, South Korea with Mexico, Brazil and Chile. The authors also study the impact of FDI on supply chain activities.

KW - Brazil

KW - Chile

KW - China

KW - Mexico

KW - South Korea

KW - Supply chains

UR - http://commons.ln.edu.hk/sw_master/5131

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M3 - Journal Article (refereed)

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EP - 212

JO - Journal of Chinese Economic and Foreign Trade Studies

JF - Journal of Chinese Economic and Foreign Trade Studies

SN - 1754-4416

IS - 3

ER -