Evolution of Production Networks in the Asia-Pacific Region: A Vision in Value-Added and Employment Dimensions

Chapter 6 from "Asian Economic Integration in an Era of Global Uncertainty" edited by Shiro Armstrong and Tom Westland, by ANU Press, The Australian National University, Canberra, Australia dx.doi.org/10.22459/AEIEGU.01.2018.06

30 Pages Posted: 28 Jan 2018

See all articles by Hubert Escaith

Hubert Escaith

Aix-Marseille University (Aix-Marseille School of Economics); Bournemouth University

Satoshi Inomata

Institute of Developing Economies (IDE-JETRO)

S. Miroudot

Organization for Economic Co-Operation and Development (OECD) - Trade Directorate (ECH)

Date Written: January 10, 2018

Abstract

This chapter provides stylized facts about the nature and evolution of Global Value Chains in the Asia–Pacific region, with particular attention to cross-national transfers of value added. The re-organization of production systems based on cross-country comparative advantages had a significant impact on the relative demand for labor by skill levels. Building on progress made in statistics and on advancements in input-output and graph analyses, we map and visualise regional production networks by tracing supply–use relations of goods and services between industries and across borders. This network moved from a simple hub and spokes cluster, centred on Japan, to a much more complex structure following the emergence of China that involved various countries as secondary pivots. We also identified the relative position of countries, which revealed the role and specialisation of each economy in the region’s vertical production system. The paper illustrates the development of value-added flows across countries in relation to major trade agreement schemes. It considers also the effects on employment, which has been a central subject of political debates over time. The demand for low-skilled jobs went down, while the demand for high-skilled tasks increased, across all developed and developing Asia-Pacific economies. The demand for medium-skilled workers, however, presents considerable variations among countries depending on the country’s status of economic development.

Keywords: global value chains, input-output analysis, employment

JEL Classification: C67, F14, F15, F16

Suggested Citation

Escaith, Hubert and Inomata, Satoshi and Miroudot, Sebastien, Evolution of Production Networks in the Asia-Pacific Region: A Vision in Value-Added and Employment Dimensions (January 10, 2018). Chapter 6 from "Asian Economic Integration in an Era of Global Uncertainty" edited by Shiro Armstrong and Tom Westland, by ANU Press, The Australian National University, Canberra, Australia dx.doi.org/10.22459/AEIEGU.01.2018.06, Available at SSRN: https://ssrn.com/abstract=3105290

Hubert Escaith

Aix-Marseille University (Aix-Marseille School of Economics) ( email )

Chateau La Farge
Route des Milles
F-13290 Les Milles, Provence
France
+33(0)4 42914834 (Phone)
+33(0)4 42389585 (Fax)

HOME PAGE: http://https://www.amse-aixmarseille.fr/fr/membres/escaith

Bournemouth University ( email )

Fern Barrow
Poole BH12 5BB, Dorset BH8 8EB
United Kingdom

Satoshi Inomata (Contact Author)

Institute of Developing Economies (IDE-JETRO) ( email )

Tokyo
Japan

Sebastien Miroudot

Organization for Economic Co-Operation and Development (OECD) - Trade Directorate (ECH) ( email )

2, rue André-Pascal
Paris Cedex 16, 75775
France

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