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Asia-Pacific Development Journal

The Asia-Pacific Development Journal (APDJ) is published twice a year by the United Nations Economic and Social Commission for Asia and the Pacific. The primary objective of the APDJ is to provide a platform for the exchange of knowledge, experience, ideas, information and data on all aspects of economic and social development issues and concerns facing the region and aims to stimulate policy debate and assist policy formulation. The APDJ provides a scholarly means for bringing together research work by eminent social scientists and development practitioners from the region and beyond for use by a variety of stakeholders. The Journal aims to stimulate policy debate and assist policy formulation in the region.

English

Production fragmentation in trade of manufactured goods in India: Prospects and challenges

The present paper analyses the phenomenon of production fragmentation in trade of manufactured goods in India, using trade data at the Standard International Trade Classification (SITC) 5-digit product level. It estimates production fragmentation through a decomposition of intra-industry trade in parts and components into horizontal and vertical intra-industry trade over the period 1994-2012. The paper at the product level finds that aircraft parts and automobile parts and the components industry are emerging areas of production fragmentation in manufactured goods trade over this sample period. It further observes that aircraft parts (SITC 79295) is the only parts and component product to undergo product fragmentation at the higher end of the global value chain and that the auto parts and components industry is found to be experiencing this primarily at the lower end of the value chain.

English

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