Skip to main content Accessibility help
×
Hostname: page-component-586b7cd67f-dlnhk Total loading time: 0 Render date: 2024-11-29T13:14:54.714Z Has data issue: false hasContentIssue false

Preface

Published online by Cambridge University Press:  21 October 2015

Get access

Summary

In Southeast Asia, de facto economic integration preceded de jure economic integration. Unlike in Europe, firms in Southeast Asia have expanded their production networks without any formal framework of economic cooperation, and as a result, economies in Southeast Asia are increasingly integrated through the trade of parts and components rather than final products. The drivers for the expanding production networks are rapid decline in transport and logistics costs as well as export oriented industrialization policy adopted by Southeast Asian economies. However, further advancement of production networks cannot be achieved without progress of de jure economic integration — notably FTAs and other regional economic cooperation are crucially important.

Production networks in Southeast Asia have often advanced in tandem with industrial clustering. Without industrial clustering, the competitiveness of industry cannot be sustained. Clustering enables companies to tap on agglomeration economies, reduced transport costs, and development of tacit knowledge that would otherwise stifle. These help companies to contain rising labour or land cost, and retain profitable production activities in the country. Singapore electronics industry cluster, for example, still maintains competitiveness and continues to move up the value chain, while other activities — especially standardized labourintensive or land-intensive activities — are decanted and relocated to the neighbouring Southeast Asian countries.

In this study, we investigate how the production networks and industrial clusters have progressed in Southeast Asia, especially in Singapore, Malaysia, Indonesia, and Thailand. The analytical frameworks of Global Value Chain (GVC), Global Production Network (GPN) and fragmentation theory are being used to elucidate the development of industries and production networks in the countries considered. These approaches look at similar phenomena from different perspectives, providing important insights for formulating development policies. Furthermore, several models of industrial clusters are being considered in the chapters, and some of them are examined using data obtained from field works and surveys.

In Chapter 1, trends of trade and investment in Southeast Asia are demonstrated, followed by an overview of economic theories on production networks and industrial clusters. In the first part of the book (see Chapters 2–4), the authors focus on the production networks and industrial clusters in Southeast Asia based on the trade statistics and other empirical data.

Type
Chapter
Information
Production Networks and Industrial Clusters
Integrating Economies in Southeast Asia
, pp. xiii - xiv
Publisher: ISEAS–Yusof Ishak Institute
Print publication year: 2008

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Save book to Kindle

To save this book to your Kindle, first ensure [email protected] is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×