The influence of tariff regimes on global production networks (GPNs (original) (raw)

International Production Networks:Contributions of Economics to Policymaking

The International Economy

ASEAN and developing East Asia have applied development strategies that have effectively utilized global value chains and have achieved both sustained economic growth and rapid poverty alleviation. This paper claims that the international trade theory or economics in general has greatly contributed to the formulation of such development strategies. Economists should also work for new issues and challenges that these countries start facing in a new step of economic development.

The Role of Trade Costs in Global Production Networks. Evidence from China's Processing Trade Regime

World, 2010

In a seminal contribution, has shown that vertically specialized trade should be more sensitive to changes in trade costs than regular trade. Yet empirical evidence of this remains remarkably scant. This paper uses data from China's processing trade regime to analyze the role of trade costs on trade within global production networks (GPNs). Under this regime, firms are granted duty exemptions on imported inputs as long as they are used solely for export purposes. As a result, the data provide information on trade between three sequential nodes of a global supply chain: the location of input production, the location of processing (in China) and the location of further consumption. This makes it possible This paper-a product of the International Trade Department, Poverty Reduction and Economic Management Networkis part of a larger effort to analyze the role of trade costs within global production networks. Policy Research Working Papers are also posted on the Web at http://econ.worldbank.org. The authors may be contacted at ari.van-assche@hec.ca and maa@sandiego.edu.

Global production networks: realizing the potential

Understanding and conceptualizing the complexities of the contemporary global economy is a challenging but vitally important task. In this article, we critically evaluate the potential of one interpretive framework—the global production networks (GPN) perspective—for analysing the global economy and its impacts on territorial development. After situating the approach in relation to other cognate chain/network approaches, the article proceeds to review and evaluate a number of underdeveloped areas that need to be understood and incorporated more fully if the framework is to deliver on its early potential. The article concludes with a consideration of the key research issues facing work in this area.

The impact of trade policy on global production networks: the solar panel case

Review of International Political Economy, 2015

This paper seeks to shed light on the interactions between public institutions and global production networks (GPNs) through a case study of the 2012À2013 European Union anti-dumping investigation on Chinese solar panels. Drawing on trade data and interviews, as well as press reports and position papers, I analyze the facts of the case and the debate around it and explore the impacts on the geography of production. The case draws attention to two issues which deserve greater attention in research in the GPN tradition. First, the position of companies within a GPN may dictate their political interests more clearly than their nationality. Second, GPNs are seen to be malleable. They can adjust their structures in reaction to new trade restrictions. This fact draws attention to the need to incorporate institutional factors, like trade policy, more effectively into GPN analysis. I propose some criteria to help researchers to do so. Finally, in terms of broader political economy, the case illustrates how, in the post financial crisis context, their domestic market is becoming an important lever for the Chinese government in international negotiations. Thus, at least in the trade sphere, the rise of China as a consumer market is changing global power relations.

Interdependent Regional Trade Agreements and Production Networks: An Empirical Analysis ∗

2011

Similar to determinants of natural trade partnerships such as geographical distance and factor endowments, production networks can be defined as a determinant of acquired trade partnerships. Deepening global production networks may generate positive welfare effects and lead to a proliferation in the formation of interdependent regional trade agreements (RTAs). This paper empirically investigates the linkage between production networks and the formation of interdependent RTAs by applying a qualitative choice model estimation methodology with panel data that cover bilateral country-pairs among 147 countries between 1995 and 2008. We find that country-pairs’ existing RTAs with third countries increase the incentive for those country-pairs to form bilateral RTAs and enlarge existing RTAs. However, we cannot support existing findings about the competitive formation of new RTAs as being initiated by existing RTAs in other country-pairs worldwide. Furthermore, we argue that the interdepend...

Implications of global value chains for trade policy

This chapter describes the challenges that global value chains (GVCs) present for traditional trade policy and the main trade policy implications of the increased fragmentation of production. It aims to clarify concepts, offer new policy insights, and help policy makers to see new issues that require special attention in a context of global production networks.

Comparing sectoral international trade networks

2010

This paper uses the tools of network analysis to assess the different characteristics of world trade in different manufacturing industries. The structure of the trade networks is compared to understand to what extent the world market characteristics differ between sectors. We find that in some sectors the structure of trade flows gives rise to a dense, widespread network with many links, while in others we observe a centered network, organized around hubs that centrally coordinate the flows. The results indicate a pattern of network structures, showing a positive correlation between the goods' complexity and the network complexity, changing the extent of the relevant market and its structure across goods.

EU Integration and Production Networks

Revista de Economia Aplicada

The aim of this paper is to analyse the participation of Spain in International Production Networks using parts and components trade data from 1990 to 2009. We are particularly interested in understanding the potential contribution of factor endowment differences in networking and the impact of belonging to a common geographical and trading area such as the European Union on this participation strategy. Using an extended gravity panel data model, we find that Spain’s integration into production networking results from its comparative advantage but also from other factors such as EU membership and good quality transport and communication infrastructures.

International Trade in the Context of Spreading Production Networks

Herald of Kyiv National University of Trade and Economics, 2019

It has been proved that during global production fragmentation, the economic entities gain access to new technologies, forming a new system of international economic relations where protectionism is unacceptable to all members of the network. the obtained conclusions are recommended for considering for economic policy of the key entities of international production networks functioning in the XXI century.