A Rise Of China And The Japanese Economy: Evidence From Macro- And Firm-Level Micro-Data
AbstractAfter prolonged recessions, the Japanese economy had recovered in the first half of the 2000s and recorded sustained growth until summer 2007. The purpose of this paper is to examine the role of international trade with China for the recovery of Japanese firms in the 2000s from both macro- and micro-perspectives. Using aggregated data, Vector Autoregression suggests that the increased exports to China had a strong positive impact on Japanese manufacturing production but had insignificant impact on small firms and non-manufacturing production during the last decade. It also shows that the increased imports from China had no significant impact on Japanese production. However, using firm-level data, we find that various connections with China improved performance of small- and medium-size firms in manufacturing industry and in wholesale and retail industries. In the micro-level, the imports from China improved growth of sales in manufacturing firms and both profits and growth of sales in wholesale and retail industries since the early 2000s. The exports to China, which had no significant impact in the early 2000s, came to improve both profits and growth of sales of Japanese firms after the mid-2000s. However, not all connections with China had beneficial impacts on the small- and medium-size firms. The micro-findings suggest that the increased dependence on China had highly heterogeneous impacts on Japanese firms in the 2000s.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by World Scientific Publishing Co. Pte. Ltd. in its journal China Economic Policy Review.
Volume (Year): 01 (2012)
Issue (Month): 01 ()
Contact details of provider:
Web page: http://www.worldscinet.com/cepr/cepr.shtml
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tai Tone Lim).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.