Production fragmentation, upstreamness, and value-added : evidence from factory Asia 1990-2005

We exploit the recent release of the 2005 Asian Input-Output Matrix to dress a picture of the geographic fragmentation of value added in Factory Asia from 1990 to 2005. We document 3 stylized facts. The first is that the average share of foreign value added embedded in production rose by about 7 percentage points between 1990 and 2005, from 9% to 16%. The second is that, contrary to popular belief, China\u27s production embeds a smaller share of foreign value added than other Factory Asia countries\u27. Between 1990 and 2005 among Factory Asia countries China grew most after Japan as a source of value added to other countries\u27 production. Third, country-industries at the upstream and downstream extremities of the supply chain embed a smaller share of foreign value added than those with intermediate levels of upstreamness