Working Paper: NBER ID: w17716
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: Globalization; Industrialization; Supply Chains; ICT Revolution; Trade
JEL Codes: F1; F2; F21; F23; F43
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| ICT revolution (L63) | lower coordination costs (D23) |
| lower coordination costs (D23) | separation of production stages (L23) |
| joining a supply chain (L14) | easier industrialization (N60) |
| proximity to advanced technology nations (O57) | ability of developing nations to participate in supply chains (F63) |
| joining supply chains (L14) | access to advanced technologies and managerial know-how (O36) |
| geographical proximity to high-technology nations (O57) | integration into supply chains (F15) |