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GTAP Resource #3621

"How can be FDI attracted in a framework of two intermediates"
by Uchida, Yoko and Kazuhiko Oyamada

One of the key factors behind global trade growth in recent decades is increase in intermediate input as a result of the development of vertical production networks (Feensta, 1998). Manufacturing goods are no longer produced in a single country. Production processes are subdivided into several stages, in which respective countries specialize in producing parts and components. Many countries are involved in vertical production networks of producing just a single final good to consumers. In particular, as Pitigala (2009) points out, emerging economies are considerably benefited from the development of vertical production networks since the network enabled them to install an appropriate portion of the production stages according to their levels of production technology. These countries, especially East and Southeast Asia, enjoyed rapid trade growth through extensive participation in global production networks.

Resource Details (Export Citation) GTAP Keywords
Category: 2011 Conference Paper
Status: Published
By/In: Presented at the 14th Annual Conference on Global Economic Analysis, Venice, Italy
Date: 2011
Created: Uchida, Y. (4/15/2011)
Updated: Uchida, Y. (4/15/2011)
Visits: 1,282
- Foreign direct investment

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