TY - BOOK ID - 133701215 TI - Trade Integration in East Asia : The Role of China and Production Networks PY - 2007 PB - Washington, D.C., The World Bank, DB - UniCat KW - Capital KW - Costs KW - Development KW - Economic Growth KW - Economic Integration KW - Economic Theory and Research KW - Emerging Markets KW - Exports KW - Free Trade KW - Goods KW - Income KW - Increasing Returns KW - Increasing Returns To Scale KW - Industrialization KW - Industry KW - Inputs KW - International Economics & Trade KW - Law and Development KW - Macroeconomics and Economic Growth KW - Organizational Capital KW - Patents KW - Private Sector Development KW - Production KW - Production Costs KW - Public Sector Development KW - Technology Industry KW - Trade KW - Trade Barriers KW - Trade Law KW - Trade Liberalization KW - Trade Policy KW - Wage Differentials UR - https://www.unicat.be/uniCat?func=search&query=sysid:133701215 AB - Production networks have been at the heart of the recent growth in trade among East Asian countries. Fragmentation trade, reflected mainly in the trade in parts and components, is expanding more rapidly than the conventional trade in final goods. This is mainly due to the relatively more favorable policy setting for international production, agglomeration benefits arising from the early entry into this new form of specialization, considerable intercountry wage differentials in the region, lower trade and transport costs, and specialization in products exhibiting increasing returns to scale. The economic integration of China has deepened production fragmentation in East Asia, countering fears of crowding out other countries for international specialization. International production fragmentation in East Asia has intensified intraregional trade but has depended heavily on extraregional trade in final goods. While production networks centered on China have contributed significantly to growth in East Asia, they also breed vulnerabilities. They have not automatically led to technology spillovers and have led to an extreme interdependence across East Asian countries. ER -