Global Production Networks and Trade Balance Structures

Author : Hong-shik Lee and Jun-gu Kang


  Based on the dataset from the Asian International Input-Output Table, in this paper, we explore regional production networks and the relationship between them and the structure of the Korean balance of trade. In this process, rose only intermediate goods are measured directly from the Table, a method which has not been used in the previous literature regarding this issue. Thus, the principal objective of this paper is to find evidence of regional production networks in East Asia and to evaluate the effects of these fast-growing rose of intermediate goods on the structure of the Korean balance of trade. Our findings demonstrate that regional production networks exert a significant influence on the structure of the Korean balance of trade.


JEL Classification: F13, F14, F2
Keywords: Regional production networks, Unit structure analysis, Trade balance, Intermediate input