Prema-chandra Athukorala: This paper provides an interesting, novel analysis of the dynamics of production networks in Asia with a focus on the experiences of the member countries of ASEAN. The empirical analysis is conducted using the standard gravity modeling framework using a new data set extracted from the UN Comtrade database covering bilateral trade of the ten countries with all trading nations (excluding Taiwan, which is not considered a country by the UN community) over the period 2007–13. The product coverage is for manufacturing trade as defined to cover products classified under Harmonised System (HS) codes 28 to 92. Trade within production networks is measured in terms of parts and components in machinery trade (HS 84–89 and 90–92) identified at the six-digit HS level.
The empirical analysis yields four key findings: (1) ASEAN production networks have deepened and widened over time, along with the formation of domestic industrial agglomeration in...