Reports & Publications

Empirical Global Value Chain Analysis in Electronics and Automobile Industries: An Application of Asian International Input-Output Tables

Discussion Papers


by OIKAWA Hiroshi

October 2008


This study aims to examine the international value distribution structure among major East Asian economies and the US. The mainstream trade theory explains the gains from trade; however, global value chain (GVC) approach emphasises uneven benefits of globalization among trading partners. The present study is mainly based on this view, examining which economy gains the most and which the least from the East Asian production networks. Two key industries, i.e., electronics and automobile, are our principle focus. Input-output method is employed to trace the creation and flows of value-added within the region. A striking fact is that some ASEAN economies increasingly reduce their shares of value-added, taken by developed countries, particularly by Japan. Policy implications are discussed in the final section.

Keywords: Global Value Chains (GVCs), Foreign Direct Investment (FDI), Electronics, Automobile, Input-Output Analysis
JEL classification: C67, F23, L62, L63,

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