Woong Lee: Dr. Soejachmoen explores the link between fragmentation exports and their determinants in the automotive industry. In particular, she seeks to find why Indonesia is lagging behind its export performance in the global production network, compared with other competitors, such as Thailand. In her empirical analysis, using unbalanced panel data of 98 countries with 20-year periods, she estimates a model of fragmentation based on Jones and Kierzkowski (1990). She chooses a fixed-effects model, although she does not perform a panel fixed-effects regression but a least square dummy variable (LSDV) due to the fact that there are time-invariant variables: trade cost and infrastructure condition. The results show that the determinants on exports of parts and components (P&C) are different between developed and developing countries. More importantly, when the sample is restricted to Asian countries, the main determinants tend to be changed except labor costs, in comparison with the cases for...

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