Comments on Economic Integration and Network Trade: A Comparison of East Asia  and the European Union

Prema-chandra Athukorala,  Australian National University: This paper undertakes a comparative analysis of production networks in Europe and East Asia in the global context, with emphasis on determinants of export patterns and intra-regional linkages. The findings suggest that: exports of intermediate goods (used as a proxy for parts and components or “middle products” exchanged within production networks) are more sensitive to trade barriers than total goods exports; regionalization of production networks is primarily determined by greater sensitivity of intermediate goods trade cost associated with distance that overwhelms cost advantages arising from advances in transportation and communication technology; and the production network in these two regions are being guided by distinct factors with geographic distance and remoteness playing a more significant role in East Asia than in the EU. Overall, this is an interesting paper on an important subject. However, I would like to suggest that the authors pay attention to the...