The book provides a comprehensive examination of patterns and determinants of production networks in East Asia, a key driver in the region’s global success. It provides the reader with an accessible understanding of the theoretical literature on production networks and recent developments in empirical analysis at the industry and firm-levels. The topics covered in the book include gross trade in parts and components and gravity models, trade in value added, industry case studies, and microdata econometric studies of firm heterogeneity in production networks. The microdata econometric studies explore key aspects of the heterogeneity of firms in East Asian production networks such as technological capability, the entry of small and medium-sized enterprises into production networks, business use of free trade agreements, and access to credit. Blending new sources of data, empirical tools, and econometric methods, this book is highly recommended for readers who seek to understand the workings of the complex web of production networks in East Asia.
Ganeshan Wignaraja is advisor in the Economic Research and Regional Cooperation Department of the Asian Development Bank. Previously he was director of research of the Asian Development Bank Institute. He has a doctorate in economics from the University of Oxford and has published 15 books on international economics, regional integration, and economic development.