Skip to main navigation Skip to search Skip to main content

Factory Asia Meets Factory North America: How Far Does Latin America Get Involved in Machinery Production Networks?

Research output: Contribution to journal › Article › peer-review

Abstract

International production networks in machinery industry have formed three large clusters, each of which is in East Asia, North America, and Europe. This paper investigates the recent evolvement of the connection between Factory Asia and Factory North America with highlighting the role of Latin American countries as a mediator. For this purpose, we utilized trade matrices and gravity equations to measure each country’s level of commitment to each bilateral machinery trade after controlling the size of the economies, distance, and others. Our major findings are threefold: first, Mexico is the only Latin American country that plays a connecting role between two Factories. Second, in 2010–2019, the linkage of exports to Mexico from not only China but also other East Asian countries is strengthened particularly in machinery parts and components. Third, export linkage of China with Mexico is further intensified in 2019–2021 particularly in machinery parts and components due to the US-China confrontation, the USMCA, and other factors.

Original languageEnglish
Pages (from-to)246-275
Number of pages30
JournalChinese Economy
Volume57
Issue number4
DOIs
Publication statusPublished - 2024

Keywords

  • China
  • International production networks
  • Mexico
  • gravity equation
  • the second unbundling

ASJC Scopus subject areas

  • General Economics,Econometrics and Finance

Fingerprint

Dive into the research topics of 'Factory Asia Meets Factory North America: How Far Does Latin America Get Involved in Machinery Production Networks?'. Together they form a unique fingerprint.

Cite this