Evolution Of Global Value Chains Division System And Changes Of Production Networks In East Asia

With the further development of global economic integration, internationaldivision of labor form has got a depth development corresponding to a series oftechnical, institutional and organizational transformation. The global value chaindivision basing on the product value chain is increasingly spread. As a result, theworld economy has formed a complex division of labor system including the divisionof inter-industry, intra-industry and intra-product. Accordingly, multinationalproduction activities dominated by multinational corporations increasingly present akind of fragmentation and networking,, Besides the trade share of intermediate goods(components and parts) is soaring and outsourcing is widely spread. Since the1990s,the East Asian regional economic development has broke the original pattern of"flying geese", formed a new regional production network, and become an importantpart of the global production network. As an area of the fastest economic growth rateand the largest population, the East Asian which is inserting into the world economicsystem, is not only an important supporter for the growth of the world economy, butalso an important pole in the global economic imbalance. Relative to the productionnetworks of North America and Europe, the East Asian production network isbecoming more and more complicated. The evolution and development of East Asianproduction network not only determines the role of East Asia in the world economyand has on significant impact on the change of global economic imbalances, but alsointeracts with the process of East Asia economic integration. And this will make aprofound influence on the economic interests and the prospect for economic growthamong East Asian countries (regions).This paper firstly reviews the global value chain theory and internationalproduction network theory in detail, and reveals the new trends of world economy, theformation of global value chains division system. Secondly, focusing on East Asianproduction network, this paper sums up the causes and characteristics of East Asianproduction network. Besides, this article makes an empirical analysis, from themacroscopic prospect, on FDI flows, the international division of labor and profitdistribution in East Asian production network by using FDI and value-added trade statistics, trying to depict the outline of East Asian production networks fromvalue-added prospect. Finally, according to the new trend of the division system ofglobal value chain, this paper briefly imagines the development prospect of East Asianproduction network taking the rebalancing of the global economy and regionaleconomic integration in East Asia into account.