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Global Production Sharing and Sino–US Trade Relations
Author(s) -
Athukorala Premachandra,
Yamashita Nobuaki
Publication year - 2009
Publication title -
china and world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.815
H-Index - 28
eISSN - 1749-124X
pISSN - 1671-2234
DOI - 10.1111/j.1749-124x.2009.01149.x
Subject(s) - production (economics) , china , international trade , east asia , economics , process (computing) , international economics , business , economic geography , political science , computer science , macroeconomics , law , operating system
This paper examines Sino–US trade relations, focusing on the ongoing process of global production sharing, involving splitting of the production process into discrete activities that are then allocated across countries, and the resulting trade complementarities between the two countries in world manufacturing trade. The results suggest that the Sino–US trade imbalance is basically a structural phenomenon resulting from the pivotal role played by China as the final assembly centre in East Asia‐centered global production networks.