Production networks and international trade: China,Brazil and Mexico |
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| Institution: | 1. Department of Economics, University of California, Santa Cruz, 451 Engineering 2, Santa Cruz, CA 95064, USA;2. Department of Economics, Lingnan University, SO302, 8 Castle Peak Road, Tuen Mun, Hong Kong;3. The World Bank, Washington, DC, USA;1. Assistant Professor Department of Computer Science and Engineering Anna University Regional Office, Madurai, Tamilnadu, India;2. Professor Department of Information Technology K.L.N.College of Engineering, Pottapalayam, Sivaganga, Tamil Nadu, India;1. Environment Research Institute, Shandong University, Jinan, Shandong 250100, PR China;2. Department of Life Science, Heze University, Heze, Shandong 274015, PR China;3. Shandong Provincial Key Laboratory of Fine Chemicals, School of Chemistry and Pharmaceutical Engineering, Qilu University of Technology, Jinan, Shandong 250353, PR China;1. Department of Mathematics, University of Bayreuth, Germany;2. Department of Economics, University of Bayreuth, Germany;3. Public Choice Research Centre, University of Turku, Finland |
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| 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. |
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| Keywords: | East Asia Fragmentation Global value chain Latin America Production networks Trade in parts and components |
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