Working Paper: CEPR ID: DP8768
Authors: Richard Baldwin
Abstract: Revolutionary transformations of industry and trade occurred from 1985 to the late-1990s -- the regionalisation of supply chains. Before 1985, successful industrialisation meant building a domestic supply chain. Today, industrialisers join supply chains and grow rapidly because offshored production brings elements that took Korea and Taiwan decades to develop domestically. These changes have not been fully reflected in -- high development theory -- a lacuna that may lead to misinterpretation of data and inattention to important policy questions.
Keywords: Import substitution; Production unbundling; Trade; Industrialisation
JEL Codes: F23; O14; O19
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| joining a supply chain (L14) | speed of industrialization (O14) |
| offshoring (F23) | technology lending (L86) |
| technology lending (L86) | industrial capabilities of developing nations (O14) |
| geographical dispersion of production stages (L23) | faster industrial growth (O25) |
| lack of emphasis on supply chains in high development theory (O11) | misinterpretations of data concerning industrial success (L52) |