Introduction

This introduction presents an overview of the key concepts discussed in the subsequent chapters of this book. The book explains the position of Southeast Asia in Asia's factory. It analyses the impacts of the processed trade of China on Southeast Asia's trade. The book provides insights on the value added of the six Southeast Asian countries: Indonesia, Malaysia, the Philippines, Singapore, Thailand and Viet Nam. It also presents that imported inputs increase Indonesia's firm productivity via better Indonesian product quality and variety. The book examines the extent and depth of participation of the Philippines in the electronics global value chain using trade-in-value-added and extensive margin indicators. It reviews the cluster-based development strategy adopted in Singapore. The book illustrates the development of domestic value added in Thailand's automotive industry. It also examines inter-industry trade and intra-industry trade. The book discusses the lessons learned from regional production networks in other regions such as central Eastern Europe and Latin America.