Impact of Japan's Earthquake on East Asia's Production Network

Choi, Philip Pilsoo; No, Su Yeon; Lee, Hyong-Kun; Lee, Jae-Ho; Park, Min Suk

doi:10.2139/ssrn.2320331

Cited by 1 publication

(3 citation statements)

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“…As a result, pertinent and extended loss could actually be much worse than the estimated figures; potential damages would also be on other phases meaning middleand down-streams of industry production networks. Accordingly, East Asian economies that rely more on Japan's supply for specific parts and components would suffer from more consequent costs (Choi, No, Lee, Lee & Park, 2011;PECC, 2012). Table 2 shows that Taiwan depended more on Japan's supply for parts and components than others, followed by Korea, and then China.…”

Section: Impacts From Disruptionsmentioning

confidence: 99%

“…Therefore, if Korea and Taiwan can move closer to the network stream of Japan, the regional networks would be more resilient by meeting the ends of risk sharing and cost efficiency. In spite of everything, East Asian economies especially Korea and Taiwan that rely more on Japan's supply for specific parts and components would suffer from more consequent costs resulted from the Great East Japan Earthquake (Choi, No, Lee, Lee & Park, 2011;PECC, 2012). It is sensible that Korea and Taiwan would wish to relieve the reliance.…”

Section: Randdmentioning

confidence: 99%

“…Fourth, foreign direct investment (FDI) and regional production networks have been recognized as highly correlated. Besides trade, patterns of FDI viii Source: Choi et al (2011).…”

Section: Figure 9 Increasing Rate Of Expenditure On Randd XVIImentioning

confidence: 99%

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Advancing the Production Networks in East Asia

Chiu

2013

MMSE

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A remarkable expansion in production networks has been in solid progress in the global economy. Theprocess of expansion has been accelerated through advance in information and transportationtechnology in addition to the ongoing trend in globalization. In addition, speedily improving productiontechnology of industries enable the capacity to further breakdown their value chains into smallerproportions. Said production sharing helps enhance efficiency and reduce costs. As East Asianeconomies are in diverse phases of economic development, the relevant production networks would bejoined by both developed and emerging economies in the region. However, certain economies mightpossess the most critical or irreplaceable phase of the production networks. It means that someunexpected and significant disruptions could stop the networks from functioning regularly. It isnoteworthy that the production networks and supply chains have been driven by international tradeand associated economic activities. For the purpose of risk sharing and cost efficiency, it is necessaryto explore means at both regional level and economy level to strengthen or improve productionnetworks at the regional level, whereas major players that formulate the regional networks includeChina, Japan, Korea, and Taiwan.

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Section: Impacts From Disruptionsmentioning

confidence: 99%

Section: Randdmentioning

confidence: 99%