Production networks and international trade: China, Brazil and Mexico

K. C. FUNG, Hsiang-Chih HWANG, Francis NG, Jesús SEADE

Research output: Journal PublicationsJournal Article (refereed)

5 Citations (Scopus)

Abstract

In this paper, we examine and contrast the production networks in China, Brazil and Mexico. We highlight three results. First, over the last two decades, China's intensity of trade in parts and components has shifted from other members of Greater China to South Korea and ASEAN countries. Second, even though China's production network is mainly Asian, its parts and components trading partners are increasingly global. Brazil also increasingly trades its parts with China and East Asia, while Mexico is still focused on its trade with the United States. Third, Greater China has become a major source of parts and components to Mexican and Brazilian imports. We highlight the importance of such a pan-Pacific link and anticipate that the joint China–Brazil–Mexico production network will continue to grow.
Original languageEnglish
JournalThe North American Journal of Economics and Finance
VolumeForthcoming, available online
DOIs
Publication statusPublished - 1 Jan 2015

Keywords

  • East Asia
  • Fragmentation
  • Global value chain
  • Latin America
  • Production networks
  • Trade in parts and components

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