The goal of this paper is to shed light on how important the
smile curve notion is at the sectoral level. In particular, we focus on how
value added has shifted along the value chain when it comes to Asian exports.
The idea and reasoning behind the "smile curve" in relation to global
value chains have gained traction recently and have been examined at the level
of individual firms. However, they are rarely recognized and examined at the
sectoral level utilizing actual data for cross-national analysis. Using TIVA
database for 2001 and 2011 time period, several conceptual value chain are
investigated including exports of Base Metals, Computer Electronics, Electrical
Machinery and Transportation equipment’s in Asian Economies. This paper focuses
an idea to measure both the strength and linkages between producers and
consumers of global value chain. The identified smile curve provides a very
intuitive understanding of the roles played by different countries in various
sectors and helps in identifying the benefits gained by them through their
participation in global trade. ASEAN’s economic dynamism is expected to benefit
from RCEP that will provide a platform for broader economic integration and
help address concerns about the ‘noodle bowl’ effect of overlapping bilateral
and regional agreements. RCEP will deliver tangible benefits through potential
improvements in market access, more coherent trade facilitation, regulatory
rules, reforming barriers and cooperation. The flying-geese (FG) theory of
growth is in line with the dynamics of structural upgrading and interaction
growth through trade and investment within a hierarchy of nations. The function
of the Regional Comprehensive Economic Partnership in enhancing economic
integration is also emphasized in the report.
Author(s) Details:
Sakshi Aggarwal,
Indian Institute of Foreign Trade, India.
Please see the link here: https://stm.bookpi.org/CRBME-V5/article/view/14187
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