ABSTRACT
Globalization plays an important role in the industrialization of many countries in East and
Southeast Asia. An open trade and investment regime as well as outward/export orientation
are the main characteristics of industrialization in these countries. More recently, since
early 1990, character of industrial development in these regions has gone more to advance
it with establishment of networks of production involving firms across countries within the
regions. This exhibits a model of industrial development, commonly known as regional/
international production networks (Kimura and Ando 2005; Kimura 2008), based on the
framework of product fragmentation (e.g., Arndt and Kierzkowski 2001; Cheng and
Kierzkowski 2001; and Deardorff 2001) and it is probably unique only to these regions.
