Advancing the Production Networks in East Asia

Abstract

A remarkable expansion in production networks has been in solid progress in the global economy. The
process of expansion has been accelerated through advance in information and transportation
technology in addition to the ongoing trend in globalization. In addition, speedily improving production
technology of industries enable the capacity to further breakdown their value chains into smaller
proportions. Said production sharing helps enhance efficiency and reduce costs. As East Asian
economies are in diverse phases of economic development, the relevant production networks would be
joined by both developed and emerging economies in the region. However, certain economies might
possess the most critical or irreplaceable phase of the production networks. It means that some
unexpected and significant disruptions could stop the networks from functioning regularly. It is
noteworthy that the production networks and supply chains have been driven by international trade
and associated economic activities. For the purpose of risk sharing and cost efficiency, it is necessary
to explore means at both regional level and economy level to strengthen or improve production
networks at the regional level, whereas major players that formulate the regional networks include
China, Japan, Korea, and Taiwan.