Title

Production networks and international trade: China, Brazil and Mexico

Document Type

Journal article

Source Publication

The North American Journal of Economics and Finance

Publication Date

2015

Volume

Forthcoming, available online

Keywords

East Asia, Fragmentation, Global value chain, Latin America, Production networks, Trade in parts and components

Abstract

In this paper, we examine and contrast the production networks in China, Brazil and Mexico. We highlight three results. First, over the last two decades, China's intensity of trade in parts and components has shifted from other members of Greater China to South Korea and ASEAN countries. Second, even though China's production network is mainly Asian, its parts and components trading partners are increasingly global. Brazil also increasingly trades its parts with China and East Asia, while Mexico is still focused on its trade with the United States. Third, Greater China has become a major source of parts and components to Mexican and Brazilian imports. We highlight the importance of such a pan-Pacific link and anticipate that the joint China–Brazil–Mexico production network will continue to grow.

DOI

10.1016/j.najef.2015.09.002

Print ISSN

10629408

Publisher Statement

Copyright © 2015 Published by Elsevier Inc.

Access to external full text or publisher's version may require subscription.

Full-text Version

Publisher’s Version

Recommended Citation

Fung, K. C., et al. (2015). Production networks and international trade: China, Brazil and Mexico. North American Journal of Economics and Finance. http://dx.doi.org/10.1016/j.najef.2015.09.002

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