By Wendy Dobson, Siow Yue Chia, International Development Research Centre (Canada), Institute of Southeast Asian Studies
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Second, regional integration can be reduced by firms from outside the region whose trade is outside the region. Although the relative magnitudes of these offsetting trends are difficult to estimate, the positive influence of investments from within the region is growing. 2. The region's diversity is "harnessed" by governments intent on industrial upgrading and by MNEs whose objectives are served by exploiting locational differences. Governments, MNEs, and East Asian firms act strategically. Firms exploit the region's diversity by slicing up the value chain and allocating and reallocating value-added activities — rather than entire industries according to a location's 3.
The first set of questions relates to how firms exploit location. 9. We expect to see high value-added segments in Singapore, Taiwan, and Hong Kong; lower value-added activities in the other economies; and migration of these activities from one economy to another as location variables change. 6. Office and computing machinery (ISIC 3825): trade-intensity coefficients for eight East Asian economies. 69 Malaysia Philippines Singapore Taiwan Thailand Source ANU (1995). Note: SIC, International Standard Industrial Classification.
Each researcher identified the universe of firms in each industry and selected 30—40 firms, both local and foreign, to be surveyed. The number was determined by time and financial resources available for the study. Standardized interview protocols were then sent to each firm, with follow-up by telephone and personal interviews. Because of the small sample sizes, researchers focused on firms of Japanese, US, and East Asian origins, although local and European firms were not systematically excluded.