Portrait of Factory Asia: Production network in Asia and its implication for growth -
the ‘smile curve’

Joint Research Program Series

No.159

Edited by Richard BALDWIN, Tadashi ITO, Hitoshi SATO
Published in February 2014

Cover (163KB)

1. INTRODUCTION
2. ECONOMY-WIDE SMILE CURVE AND PRIMA FACIE EVIDENCE
2.1. TRACING BACK THE SOURCE OF VALUE ADDED IN EXPORTS
2.2. PRIMA FACIE EVIDENCE: ECONOMY-WIDE SMILE CURVE
3. ECONOMICS OF THE SMILE CURVE
3.1. ORGANISING FRAMEWORK: FIRM-LEVEL SMILE CURVE
3.2. ‘SERVICIFICATION’ OF MANUFACTURING
4. DECONSTRUCTING THE VALUE SHIFT TO SERVICES
4.1. SMILE CURVES 1985-1995 AND 1995-2005
4.2. THE GEOGRAPHY OF THE SHIFT TO SERVICES VALUE ADDED
4.3. DATA FOR 5 EXPORT SECTORS AND 8 NATIONS
5. CONCLUDING REMARKS AND TESTABLE HYPOTHESES

REFERENCES

Appendix
A sketch of the concept of the value-added computation

List of industries

Appendix
Figures for 4.1.: Aggregate smile curve by industry (the other industries), 1985-1995 and 1995-2005