On The Asymmetry Of East Asian Specialization System

Since entering the 21st century, the most remarkable case in the global economic development is the rise of China economy. China's rise, China has become the world's factory, Chinese model and so on, has become a hot topic of international economic sector, business, academia and the mainstream media. China, as one of the largest economies in East Asia, has close economy relationship with other countries and regions, and provides a vast market to them. With the development of economic globalization, the international division of labor started. Because of the economy falling behind Western developed countries and the characteristics of factor endowment, East Asia is in the backward position of the international industrial chain. This brought lots of disadvantageous influence to the economy development of East Asia. The thesis tries to research the problem from the point of East Asia industry division of labor system, makes some suggestions to change the industry division of labor conditions, and thus change the status of East Asia in the whole international industry division of labor. The thesis also analyses China's status in East Asia industry division of labor system, and makes advice to change China's current disadvantage situation.The full thesis is divided into four parts. The first part, that is introduction, introduces the theoretical and practical significance of this subject, outlines the relevant research of scholars from home and abroad.PartⅡdiscusses the evolution of East Asia industry division of labor system. First of all, this part introduces the conditions and basis of East Asia industry division of labor system. In 1990s, East Asia formed intra-industry division of labor model on the basis of economies of scale. The foundation of East Asia production network provided a prerequisite to form intra-industry division of labor system. Regional production network means the multinational companies through cross-border R & D, product design, the provision of inputs, production, sales and after-sales service, to form a production network, which includes its subsidiaries, branches, subordinate contractors, suppliers, service providers and other cooperative institutions. In general, the higher industrial technology, the higher value-added products. When a leading industry in one region includes value-added links which need to use different elements and technology at all levels, there is a certain developing base to form intra-industry division of labor in this region. The added value of the leading industry value chain in East Asia indeed is multilevel, and the links in industry chain have great different demand to elements such as natural resources, labor and technology. Therefore, the multilevel added value of products in leading industry is the basis of intra-industry division of labor. Since entering the 21st century, the economy strength of East Asian countries changes obviously. The ANIEs and China's economy develops fast, reducing the gap with Japan. Through attracting foreign investment, East Asian countries promote their technology level and develop the complexity and network of industry structure.Secondly, this part introduces the development process of East Asia industry division of labor system. From 1980s, ANIEs and ASEAN4's industrial products and capital goods trade grew rapidly. In the trades with ASEAN4, ANIEs not only played a role as capital goods suppliers, but also as consumer goods recipients. This developed industry product trades and division of labor between industries. The thesis introduces trade situation of TV and VCR between Japan, Asia NIES and ASEAN4. From the data, we can find from 1980s the division of labor relationship of the mutual supply of the same industry products between Japan and Asia NIES expanded continuously, so does the division of labor relationship between Japan and ASEAN4 from 1990s. At the same time, in the same industry sector, the same industry products at grade aspect carry out division of labor, that is, the disparity of division of labor of products in the industry developed day by day.Finally, this part discusses the character of East Asia industry division of labor system. Japanese scholar Masuda Taro found that electrical and mechanical Industry in East Asia was in the line with theoretical requirements of the target industries through the analysis of the practical level measured data, and the development of its internal trade has reached a considerable degree. Hence, electrical and mechanical Industry in East Asia is the leading industry in the intra-industry division of labor system. Although intra-industry division of labor leading by mechanical and electrical industry in East Asia is now to replace inter-industry division of labor under the flying geese model, because of the difference of economy basis of economies and the level of factor accumulation, East Asian intra-industry division of labor still can be seen flying geese model, displaying that vertical division of labor base on the different added-value in industry chain. In recent years, with the development of East Asian after-developed economies, East Asian countries all fall into a fierce competition, and the level of industry transfer from a single degree towards the complexity degree. Many after-developed economies not only have grate industrial competitiveness in the labor-intensive industries, but also have grate industrial competitiveness in labor and capital-intensive industries, labor and technology-intensive industries, some technology-intensive industries and capital-intensive industries. Industry structures which appeared late let East Asian countries involve in East Asia intra-industry division of labor at various levels, strengthening the East Asian intra-industry division of labor complex network trend.PartⅢintroduces the performance of the Asymmetry of East Asia industry division of labor system and policy recommendations. Through calculating the major economies in East Asia import and export data in 1995,2000,2005,2007, we got the major categories of products intra-industry trade index. Intra-industry trade has become an important trade form between East Asian economies. Compared intra-region trade form, we can find the proportion of intra-industry trade in East Asia is higher, but the proportion of the level intra-industry trade is too low. So it is difficult to form full mutual demand of the final consumer goods in East Asian. This division of labor model and trade system is weak to external shocks and lack stability. Vertical intra-industry trade is East Asia's main division of labor, which lead to non-symmetrical structure of the import and export of goods and markets. Through calculating the data of China and ASEAN4 importing capital goods and intermediate goods from ANIEs, Japan and the world, we can see the proportion of China and ASEAN4 importing capital goods and intermediate goods from ANIEs and Japan is more than 50%. It means that China and ASEAN4 strongly depend on importing capital goods and intermediate goods from ANIEs and Japan. Then through calculating the data of China and ASEAN4 exporting the ultimate consumer goods, we can see the proportion of China and ASEAN4 exporting the ultimate consumer goods to European and American countries is more than 50%, the proportion export to Japan is only 15%. This non-symmetry of import and export commodities and markets made China and ASEAN4 have a greater trade Asymmetry to European and American countries, meanwhile economy and trade frictions increased. Through analyzing the ripple effect of the demand of the East Asian region, we find East Asian lacks the final product "absorber." In response to the performance of Asymmetry, the thesis takes some suggestions: First, in order to make East Asia networks operate stably, it is necessary to promote the division of labor of product disparity and create a mutual demand of the ultimate consumer goods. Second, strengthen regional cooperation and reduce the dependence of the product outside the region. Third, East Asian economies should expand regional demand and form region self-supply and demand cycle. Fourth, economies should be committed to the development of basic industries, larger economies of scale countries should set up complete national economy system and form inside and outside associated reproduction structure.PartⅣdiscusses China's status in the industry division of labor in East Asia.China has close economy and trade relationship with other East Asian countries. But with the rise of the China economy, we should also see that China has low level of factor accumulation, and still in the bottom of the industrial chain. Although the scale of division of labor is large, but very little profit. In response to this problem, this thesis presents a number of recommendations. First, under the perspective of the international division of labor strengthen elements competitiveness. Second, at the time to attract foreign investment, we should focus on effective use of foreign investment, regulatory, and diversification of sources. Third, the enterprises should take measures to control higher added-value aspect in industry chain, enhance Chinese enterprises'status in the vertical division of labor, and change Chinese enterprises unfair distribution in the interests.