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Article
Production networks and international trade: China, Brazil and Mexico
The North American Journal of Economics and Finance
  • K. C. FUNG
  • Hsiang-Chih HWANG, Lingnan University
  • Francis NG
  • Jesús SEADE, Lingnan University, Hong Kong
Document Type
Journal article
Publication Date
1-1-2015
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
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Copyright © 2015 Published by Elsevier Inc.

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Citation Information
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