Open AccessInvestigating ASEAN’s Participation in Global Value Chains: Production Fragmentation and Regional Integration
Author(s) -
Sheng Zhong,
Bin Su
Publication year - 2021
Publication title -
asian development review
Language(s) - English
Resource type - Journals
eISSN - 1996-7241
pISSN - 0116-1105
DOI - 10.1142/s0116110521500025
Subject(s) - stylized fact , value (mathematics) , economics , international trade , production (economics) , international economics , global value chain , fragmentation (computing) , regional integration , economic geography , macroeconomics , comparative advantage , machine learning , computer science , operating system
This paper focuses on the Association of Southeast Asian Nations (ASEAN)—a major final assembler in production—where studies and evidence on the role of the region in global value chains are limited. We seek to provide new evidence regarding the extent and patterns of international fragmentation in ASEAN. To do so, we derive the foreign value-added shares of final products for all global value chains of ASEAN. Using the Asian Development Bank’s multiregional input–output tables for 2000–2017, we document a series of stylized facts. The results show declining foreign value-added shares in ASEAN. Regional economic integration within ASEAN has increased, while value-added contributions vary widely across its members. We find evidence of increasing value-added contributions from emerging economies to ASEAN, whereas the contributions from advanced economies have declined.