DP8768 Trade and industrialisation after globalisation?s 2nd unbundling: How building and joining a supply chain are different and why it matters

Author(s): Richard Baldwin
Publication Date: January 2012
Date Revised: January 2013
Keyword(s): import substitution, production unbundling, trade and industrialisation
JEL(s): F23, O14, O19
Programme Areas: International Trade and Regional Economics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=8768

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.