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Import Competition and Employment in Japan: Plant Startup, Shutdown and Product Changes

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  • Eiichi Tomiura

Abstract

This paper examines the relationship between import competition and employment during and after the recent Bubble period in Japan. Gross job flow data are combined with import data for 334 four‐digit manufacturing industries. The estimates demonstrate that various modes of employment adjustment respond differently to changes in import prices. Job creation/destruction associated with plant startups/shutdowns was significantly sens‐itive to import competition. Among plants continuously operating, job creation during the Bubble boom by plants that altered their product mix across industries was responsive to import price fluctuations, while job flows at plants that remained within the same industries were not.

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  • Eiichi Tomiura, 2004. "Import Competition and Employment in Japan: Plant Startup, Shutdown and Product Changes," The Japanese Economic Review, Japanese Economic Association, vol. 55(2), pages 141-152, June.
    • Handle: RePEc:bla:jecrev:v:55:y:2004:i:2:p:141-152
    DOI: 10.1111/j.1468-5876.2004.t01-2-00298.x
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    Cited by:

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    2. Hayakawa, Kazunobu & Ito, Tadashi & Urata, Shujiro, 2021. "Impacts of increased Chinese imports on Japan’s labor market," Japan and the World Economy, Elsevier, vol. 59(C).
    3. Endoh, Masahiro, 2023. "The China shock and job reallocation in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 68(C).
    4. Noel Gaston & Ahmed M. Khalid (ed.), 2010. "Globalization and Economic Integration," Books, Edward Elgar Publishing, number 13767.
    5. Nobuaki Yamashita & Kyoji Fukao, 2010. "The Effects of Overseas Operations on Home Employment of Japanese Multinational Enterprises," Chapters, in: Noel Gaston & Ahmed M. Khalid (ed.), Globalization and Economic Integration, chapter 12, Edward Elgar Publishing.
    6. Kozo Kiyota & Toshiyuki Matsuura, 2006. "Employment of MNEs in Japan: New Evidence," Discussion papers 06014, Research Institute of Economy, Trade and Industry (RIETI).
    7. Yamashita, Nobuaki & Fukao, Kyoji, 2010. "Expansion abroad and jobs at home: Evidence from Japanese multinational enterprises," Japan and the World Economy, Elsevier, vol. 22(2), pages 88-97, March.
    8. Anna Maria MAYDA & NAKANE Masato & STEINBERG, Chad & YAMADA Hiroyuki, 2012. "Exposure to Low-wage Country Imports and the Growth of Japanese Manufacturing Plants," Discussion papers 12038, Research Institute of Economy, Trade and Industry (RIETI).
    9. Endoh, Masahiro, 2021. "The effect of import competition on labor income inequality through firm and worker heterogeneity in the Japanese manufacturing sector," Japan and the World Economy, Elsevier, vol. 59(C).
    10. Nobuaki Yamashita, 2010. "International Fragmentation of Production," Books, Edward Elgar Publishing, number 13615.
    11. ANDO Mitsuyo & KIMURA Fukunari, 2017. "Job Creation and Destruction at the Levels of Intra-firm Sections, Firms, and Industries in Globalization: The case of Japanese manufacturing firms," Discussion papers 17100, Research Institute of Economy, Trade and Industry (RIETI).

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