Does Javascript pass by reference?

Does Javascript pass by references or pass by values? Here is an example from Javascript: The Good Parts. I am very confused about my parameter for the rectangle function. It is actually undefined, and redefined inside the function. There are no original reference. If I remove it from the function parameter, the inside area function is not able to access it.

Is it a closure? But no function is returned.

var shape = function (config) {
    var that = {};
    that.name = config.name || "";
    that.area = function () {
        return 0;
    };
    return that;
};
var rectangle = function (config, my) {
    my = my || {};
    my.l = config.length || 1;
    my.w = config.width || 1;
    var that = shape(config);
    that.area = function () {
        return my.l * my.w;
    };
    return that;
};
myShape = shape({
    name: "Unhnown"
});
myRec = rectangle({
    name: "Rectangle",
    length: 4,
    width: 6
});
console.log(myShape.name + " area is " + myShape.area() + " " + myRec.name + " area is " + myRec.area());

Answer

Primitives are passed by value, Objects are passed by "copy of a reference".

Specifically, when you pass an object (or array) you are (invisibly) passing a reference to that object, and it is possible to modify the contents of that object, but if you attempt to overwrite the reference it will not affect the copy of the reference held by the caller - i.e. the reference itself is passed by value:

function replace(ref) {
    ref = {};           // this code does _not_ affect the object passed
}

function update(ref) {
    ref.key = 'newvalue';  // this code _does_ affect the _contents_ of the object
}

var a = { key: 'value' };
replace(a);  // a still has its original value - it's unmodfied
update(a);   // the _contents_ of 'a' are changed