Production Networks and Industrial Clusters: Integrating Economies in Southeast Asia

List of Figures

x List of Figures 1.1 Global Net Inflows of Foreign Direct Investment 3 1.2 Share in FDI Inflows in World: Distribution by Region 6 1.3 Freight Costs among Regions 7 1.4 Import-Weighted Average Tariffs 8 1.5 Porter’s Value Chain 10 1.6 Porter’s ‘Diamond’ Framework 17 1.7 Non-Monotonic Impact of Decreasing Transport Costs 19 2.1 Machinery Goods and Parts and Components: Shares in Total Exports and Imports in 2003 35 2.2 Cross-border Production Sharing in the U.S.-Mexico Nexus: An Illustration 37 2.3 The Original Idea of Fragmentation: An Illustration 38 2.4 Production Networks in East Asia: An Illustration 40 2.5 Two-dimensional Fragmentation 41 3.1 (a) Decomposition of Changes in Local Content (1990–2000): Electronics Sector* 66 3.1 (b) Changes in Import Content (1990–2000): Electronics Sector* 66 3.1 (c) Impact of Trade Structural Changes on Import Content (1990–2000): Electronics Sector* 66 3.1 (d) Impact of Technological Structural Changes on Import Content (1990–2000): Electronics Sector* 67 3.2 (a) Decomposition of Changes in Local Content (1990–2000): Automotive Sector 70 3.2 (b) Changes in Import Content (1990–2000): Automotive Sector 70 3.2 (c) Impact of Trade Structural Changes on Import Content (1990–2000): Automotive Sector 70 xi 3.2 (d) Impact of Technological Structural Changes on Import Content (1990–2000): Automotive Sector 71 3.3 (a) Spatial Linkages in Electronics Sector 73 3.3 (b) Spatial Linkages in Automotive Sector 74 4.1 Global Production Networks — A Stylized Example 90 4.2 Changing Industrial Organization and Global Production Networks and their Impact on Knowledge Diffusion 94 4.3 The Role of Singapore in Seagate’s Hard Disk Drive Production Network 105 4.4 DHL’s Global Connectivity in the Electronics Production Networks 109 5.1 Systemic Quad 135 5.2 Market and Value Chain Links of Electronics Firms, Malaysia and Indonesia, 2001 146 6.1 The Biotechnology Value Chain 166 6.2 Vertically Integrated Companies 170 6.3 Vertical and Horizontal Models of Companies in Computer Industry 171 6.4 Vertical and Horizontal Models of Companies in Biotechnology Sector 172 6.5 The Biomedical Science Cluster in Manufacturing 183 6.6 Shares of Output of Various Industrial Sectors 184 6.7 Shares of Exports of Various Industrial Sectors 185 7.1 Thailand Production, Sales and Exports of Automobile (1961–2005) 204 7.2 Structural Difference of the Supplier System Between Thai and Japanese Automotive Industry 207 7.3 The Supplier System of Engine Industry 209 7.4 The Structure of Auto Parts Makers in Thailand 210 7.5 Value Added Per Worker in Manufacturing Sector (Baht) 228 7.6 Car Prices at 1998 Price 229 7.7 Import and Export Value of Cars and Auto Parts 229 7.8 Sales and Export of Automobiles 230 List of Figures xi xii 7.9 Production Costs of Selected Parts in Thailand Relative to Japan 230 7.10 Gross Regional Product at 1998 Prices (Million Baht) 232 7.11 Map of the Automotive Belt 246 7.12 Industrialization in ESB Provinces 247 7.13 Number of Factories in Eastern Industrial Estate 247 7.14 Reasons to Invest in ESB 248 8.1 Example of a Supply Chain 261 8.2 Hierarchy of Objectives 262 8.3 ASEAN 6 Export Market, 2004 270 8.4 ASEAN Import Origin, 2004 270 xii List of Figures ...