**_Global Value Chains in the Electronics Industry                       Sturgeon and Kawakami_**

**Table 1** Industries in Manufactured Intermediate Goods in 1988 and 2006 Ranked According to 2006 Total Trade

|**Industries and product groups**<br>**in top-50 MIG product list**|MIG trade<br>(US$,<br>millions)|1988<br>Share of<br>top-50<br>MIG<br>(percent)|Share in<br>total MIG<br>trade<br>(percent)|MIG trade<br>(US$,<br>millions)|2006<br>Share of<br>top -50<br>MIG<br>(percent)|Share in<br>total MIG<br>trade<br>(percent)|1988–<br>2006<br>Annual<br>growth rate<br>(percent)|
|---|---|---|---|---|---|---|---|
|Electronics|162,980|24.4|8.1|1,670,940|43.3|17.4|13.8|
|Automotive and motorcycle|167,506|25.1|8.3|824,392|21.4|8.6|9.3|
|Basic mat. (metal/wood/paper)|116,339|17.4|5.8|325,676|8.4|3.4|5.9|
|Chemicals andplastics|62,954|9.4|3.1|254,523|6.6|2.7|8.1|
|Manufactured metalparts|40,328|6.0|2.0|215,085|5.6|2.2|9.7|
|Gold and diamonds|47,596|7.1|2.4|203,064|5.3|2.1|8.4|
|Aircraftparts|37,131|5.6|1.8|184,575|4.8|1.9|9.3|
|Const equip&gen ind machpts|20,166|3.0|1.0|78,688|2.0|0.8|7.9|
|Pharmaceuticals|0|0.0|0.0|66,503|1.7|0.7|NA|
|Propane|0|0.0|0.0|35,946|0.9|0.4|NA|
|Textiles (and hides)|12,657|1.9|0.6|0|0.0|0.0|NA|
|**Total top-50 MIG**|**667,657**|**100.0**|**33.1**|**3,859,393**|**100.0**|**40.3**|**10.2**|
|**Total MIG for three industries**||||||||
|Electronics MIG total|231,295||11.5|1,942,283||20.3|12.5|
|Automobiles and motorcycle|212,961||10.6|974,278||10.2|8.8|
|Apparel and footwear|73,610||3.6|239,866||2.5|6.8|
|**Total MIG for three industries**|517,866||25.7|3,156,427||32.9|10.6|
|**Total MIG trade**|**2,018,297**||**100.0**|**9,579,710**||**100.0**|9.0|

_Source:_ Sturgeon and Memedovic (forthcoming) from UN Comtrade Standard International Trade Classification (SITC) Rev. 1 data. To identify commodities as Consumption, Capital, and Intermediate goods, the conversion table Broad Economic Category (BEC) to SITC Rev. 1 from World Integrated Trade Solution (WITS) was used. In order to calculate constant price data, National Accounts data from United Nations Industrial Development Organization (UNIDO) Statistics Unit and a GDP deflator were applied. _Note:_ MIG - manufactured intermediate goods.

As the data show, the electronics industry accounts for a growing share of intermediate goods trade and, by extension, of GVC formation. Trade in automotive and motorcycle intermediates is also very important, but strong incentives for local content have undoubtedly dampened their growth. Somewhat surprisingly, given the attention paid to the industry in the GVC literature (for example, Gereffi and Korzeniewicz 1994; Gereffi 1999), intermediate inputs to the apparel industry appear to be far less important in terms of the value of total intermediate goods trade, than inputs to the electronics and passenger vehicle industries.<sup>3</sup> Of course, this probably reflects the low unit value of textiles and other inputs to apparel and footwear relative to inputs to electronics and motor vehicles, as well as the establishment of fiber and fabric production within the world’s largest major apparel and footwear production centers, including 3 In 1988, only two products likely to be inputs to apparel and footwear products appeared in the top 50, bovine hides and skins (SITC 46) and cotton yarn (SITC 48), comprising 1.9 percent of the value of the top 50 and 0.6 percent of total trade in all manufactured intermediates. By 2006 no apparel inputs ranked among the top 50. The four highest ranked apparel inputs in 2006 were knitted and crocheted fabrics (#94), non-woven fabrics (#109 out of 1,600), impregnated (waterproof) fabrics (#129), and parts of footwear (#175).

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