K.C. Fung, Hsiang-Chih Hwang, Jesús Seade and Rocky Tung
In this paper, the authors aim to examine trade in parts and components of Mexico, Chile and Brazil, focusing in particular on trade of television parts (SITC 7711) and…
Abstract
Purpose
In this paper, the authors aim to examine trade in parts and components of Mexico, Chile and Brazil, focusing in particular on trade of television parts (SITC 7711) and semiconductors (SITC 7763) with China and South Korea. They also study the impact of foreign direct investment (FDI) on supply chain activities.
Design/methodology/approach
The authors use sub-categories of trade data to look at export and import of parts and components involving China, South Korea, Mexico, Brazil and Chile. They also use two-stage regressions to examine the impact of FDI on supply chain trade.
Findings
The authors found preliminary evidence that there may be early signs of an emerging Trans-Pacific production network between these three Latin American economies and the China-based and South Korea-based East Asian supply chains. The authors argue that this budding network will improve economic welfare. To deepen the Trans-Pacific supply chain, it would be desirable for China and South Korea to consider joining the Trans-Pacific Partnership (TPP). In addition, FDI enhances trade in components.
Practical implications
To deepen the Trans-Pacific supply chain, it would be desirable for China and South Korea to consider joining the TPP. In addition, it would be beneficial for these Latin American economies to encourage more direct investment in infrastructure and in manufacturing facilities from Asia.
Originality/value
This paper is one of the earliest research papers examining the Trans-Pacific supply chain, linking China, South Korea with Mexico, Brazil and Chile. The authors also study the impact of FDI on supply chain activities.
Details
Keywords
The same day, it was confirmed that Mexico’s lead USMCA negotiator, Jesus Seade, is seeking to head the World Trade Organization. Mexico will join the UN Security Council for…
Details
DOI: 10.1108/OXAN-DB254101
ISSN: 2633-304X
Keywords
Geographic
Topical
Implications of the USMCA.
Details
DOI: 10.1108/OXAN-DB249917
ISSN: 2633-304X
Keywords
Geographic
Topical
NAFTA: USMCA ratification looks near
Details
DOI: 10.1108/OXAN-ES249109
ISSN: 2633-304X
Keywords
Geographic
Topical
NAFTA: Quick trilateral deal looks improbable
Details
DOI: 10.1108/OXAN-ES236410
ISSN: 2633-304X
Keywords
Geographic
Topical
Global stock markets rose to a six-month high following the announcement, which does not yet include Canada. Canadian Foreign Minister Chrystia Freeland cut short a tour of Europe…
Details
DOI: 10.1108/OXAN-DB238112
ISSN: 2633-304X
Keywords
Geographic
Topical
His National Regeneration Movement (Morena) appears to have won the largest share of seats in the federal Congress, and along with its allies has come to dominate both the Chamber…
Details
DOI: 10.1108/OXAN-DB235869
ISSN: 2633-304X
Keywords
Geographic
Topical
NAFTA: Side deal push may work for US Democrats
Details
DOI: 10.1108/OXAN-ES245026
ISSN: 2633-304X
Keywords
Geographic
Topical
China nevertheless remains Mexico’s second-largest trade partner. Foreign direct investment (FDI) from China has also grown recently, reaching a historical record in net inflows…
Details
DOI: 10.1108/OXAN-DB272909
ISSN: 2633-304X
Keywords
Geographic
Topical
Prospects for Mexico to end-2018.