Production networks and international trade: China, Brazil and Mexico

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

doi:10.1016/j.najef.2015.09.002

Production networks and international trade: China, Brazil and Mexico

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

Research output: Journal Publications › Journal Article (refereed) › peer-review

7 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 language	English
Journal	The North American Journal of Economics and Finance
Volume	Forthcoming, available online
DOIs	https://doi.org/10.1016/j.najef.2015.09.002
Publication status	Published - 1 Jan 2015

Funding

sWe are grateful to the editor and an anonymous referee for providing us with very constructive comments. The authors also would like to thank the encouragement and suggestions by Professor Don Lien and Professor Leonardo E. Torre C.

Keywords

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

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10.1016/j.najef.2015.09.002

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title = "Production networks and international trade: China, Brazil and Mexico",

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.",

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T1 - Production networks and international trade: China, Brazil and Mexico

AU - FUNG, K. C.

AU - HWANG, Hsiang-Chih

AU - NG, Francis

AU - SEADE, Jesús

PY - 2015/1/1

Y1 - 2015/1/1

N2 - 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.

AB - 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.

KW - East Asia

KW - Fragmentation

KW - Global value chain

KW - Latin America

KW - Production networks

KW - Trade in parts and components

UR - http://commons.ln.edu.hk/sw_master/3405

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U2 - 10.1016/j.najef.2015.09.002

DO - 10.1016/j.najef.2015.09.002

M3 - Journal Article (refereed)

SN - 1062-9408

VL - Forthcoming, available online

JO - The North American Journal of Economics and Finance

JF - The North American Journal of Economics and Finance

ER -

Production networks and international trade: China, Brazil and Mexico

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