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Production Networks and Spatial Economic Interdependence: An International Input-Output Analysis of the Asia-Pacific Region

Discussion Papers

No.185

March, 2009

ABSTRACT

The Asia-Pacific Region has enjoyed remarkable economic growth in the last three decades. This rapid economic growth can be partially attributed to the global spread of production networks, which has brought about major changes in spatial interdependence among economies within the region. By applying an Input-Output based spatial decomposition technique to the Asian International Input-Output Tables for 1985 and 2000, this paper not only analyzes the intrinsic mechanism of spatial economic interdependence, but also shows how value added, employment and CO2 emissions induced are distributed within the international production networks.

Keywords: Production networks, spatial economic interdependence, input-output table
JEL classification: C67, F02

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