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The impact of production fragmentation on skill upgrading: New evidence from Japanese manufacturing

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  • Yamashita, Nobuaki

Abstract

This paper examines the hypothesis that industries engaged in international fragmentation of production experience greater skill upgrading using a panel data set of Japanese manufacturing over the period 1980-2000. The novelty of the study comes from the use of a newly constructed index using trade data on parts and components to measure intra-industry variations in the degree of international vertical specialisation (fragmentation intensity of trade). It also employs a methodology designed to embody peculiarities of Japan's fragmentation trade pattern. While the findings of existing studies are inconclusive, it is found that the expansion of fragmentation trade with developing East Asian countries has had a significant impact on the skills composition of Japanese manufacturing employment. At the same time, fragmentation trade with high income countries has had a skill downgrading effect. J. Japanese Int. Economies 22 (4) (2008) 545-565.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of the Japanese and International Economies.

Volume (Year): 22 (2008)
Issue (Month): 4 (December)
Pages: 545-565

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Handle: RePEc:eee:jjieco:v:22:y:2008:i:4:p:545-565

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Web page: http://www.elsevier.com/locate/inca/622903

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Keywords: International fragmentation of production Skill upgrading Japanese manufacturing;

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Cited by:
  1. Athukorala, Prema-chandra & Yamashita, Nobuaki, 2006. "Production fragmentation and trade integration: East Asia in a global context," The North American Journal of Economics and Finance, Elsevier, vol. 17(3), pages 233-256, December.
  2. KWON Hyeog Ug, 2012. "Offshoring of Japanese Small and Medium Enterprises (Japanese)," Discussion Papers (Japanese) 12004, Research Institute of Economy, Trade and Industry (RIETI).

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