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A structure of international division of labor in Asia-Pacific region -An empirical study using IDE international IO tables-

Summary In the modern economy, every now and then a commodity passes through several countries during the stage of processing. This reflects the progress of the international division of labor where value-added will be generated in the region that participated in the division of labor responding to the role. But the structure seems to have considerably changed recently in accordance with a change in an international environment including the rapid growth of China. It is necessary to see domestic economy and international trade by industry simultaneously in order to get a bird's-eye view of the international division of labor structure. However, there was no such statistics that provide information for both on a common standard basis. In this situation IDE, Institute of Developing Economies, launched to compile international input-output tables in the Asia Pacific region in 1975 and then it has published such three IO tables as 1985, 1990, and 1995 that include China as an endogenous country. And BOJ, Bank of Japan, last year estimated an extended table for the year 2000 since BOJ has an interest in recent trade trend in the Asia Pacific region. Taking this opportunity, we tried to review historical change in the division of labor in this region. It is confirmed that Japan and the United States, which were hitherto known as comparatively autarky economies, are still on the same trend. On the other hand, the value-added acquisition rate to the home country (home production rate) tends to decrease in the most of East Asian nations. Moreover, it is surprising to note that they have strengthened dependence on Rest of the World rather than intra-dependency in the East Asian region. In a word, the income of East Asia leaking beyond the border has been getting larger. At the current situation, it seems a little premature to regard East Asian region as an independent economic bloc.