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11. East Asian Production Networks Amidst the COVID-19 Shock

Author:
Ayako Obashi
Publication Date:
06-2021
Content Type:
Research Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
In the East Asian context, previous studies showed that trade occurring through production networks remained relatively steady amidst an economic shock and recovered faster and stronger once the shock was over. Using finely disaggregated product-level monthly bilateral trade data, we examine whether network trade in the East Asian region has been robust and resilient in face of the COVID-19 crisis, as well as in normal times, by conducting a series of survival analyses. We find a new set of empirical evidence suggesting the robustness of East Asian network trade in normal times and its resilience even amidst the COVID-19 shock.
Topic:
International Trade and Finance, Public Health, Pandemic, COVID-19, and Production
Political Geography:
East Asia, Asia, and Southeast Asia

12. Identifying the Impact of Supply Chain Disruption Caused by COVID-19 on Manufacturing Production in Japan

Author:
Tadashi Ito
Publication Date:
09-2021
Content Type:
Research Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
COVID-19 has disrupted all aspects of our lives, including international trade. This paper investigates the effect of supply chain disruption on production activities, in particular by exploiting the difference in the timing of the lockdowns in China and Japan. Using monthly production data, monthly export and import data, Japan’s input–output tables, and international input–output tables, the analyses find evidence of a negative impact of supply chain disruption by COVID-19 on Japan’s manufacturing production activities.
Topic:
Manufacturing, Pandemic, COVID-19, Supply Chains, and Production
Political Geography:
Japan and Asia

13. Endowment Structure, Industry Dynamics and Vertical Production Structure in China-Theory and Evidence

Author:
Jim H. Shen, Leilei Shen, and Jun Zhang
Publication Date:
12-2018
Content Type:
Working Paper
Institution:
School of Oriental and African Studies - University of London
Abstract:
This paper proposes a theoretical model and shows that the comparative advantage of China’s factor endowment allows firms specializing in the midstream stage to gain at least as much as firms that specialize in the two ends of the supply chain (capital-intensive stage and labour- intensive stage) in terms of labour productivity and profitability, if and only if they have at least as much viability and use intermediate level of capital intensity. The empirical results are consistent with the theory’s predictions. Our findings on China’s industry supply chain production patterns provide a new angle on the division of gains in the vertical production network driven by the endowment structure. This could have far-reaching implications for the industrial development of other middle-income countries.
Topic:
Industrial Policy, Labor Issues, Capital, and Production
Political Geography:
China and Asia