Global Production Network: Participation and Structural Break

DOI

10.2991/icied-17.2018.4How to use a DOI?

Keywords

Economic Crisis; Economic Shock; Fragmentation Theory; Global Production Network; Structural Break; Trade Contraction

Abstract

International trade for intermediate goods has increased along with the development of the Global Production Network. Contemporary debates are on opportunity to benefit from economic globalization by linking production into global production network. Recent specific studies identify the determinants of participation involved using various methodologies, but are less detailed on discussing some economic shocks embodied within. Although in its development, the global production network was affected by the economic crisis in Asia in 1997/1998 and the 2008/2009 economic shock which caused trade contraction. By using fixed effect regression with LSDV in model, this study aims to answer the question whether by considering the trade contraction as a structural break in the study will portrait the close relationship between trade contraction with participation of global production network. The results show that the economic crisis of 1997/1998 and the economic shock of 2008/2009 have a causal relation to the participation of the global production network

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Agus Miftahul Ilmi
AU  - Fithra Faisal Hastiadi
PY  - 2017/12
DA  - 2017/12
TI  - Global Production Network: Participation and Structural Break
BT  - Proceedings of the 2nd International Conference on Indonesian Economy and Development (ICIED 2017)
PB  - Atlantis Press
SP  - 16
EP  - 20
SN  - 2352-5398
UR  - https://doi.org/10.2991/icied-17.2018.4
DO  - 10.2991/icied-17.2018.4
ID  - MiftahulIlmi2017/12
ER  -