Application of Nationality-Adjusted Net Sales and Value Added Framework: The Case of Japan
AbstractThis paper applies the nationality-adjusted net sales and value added framework proposed in Baldwin and Kimura (1996) to Japan. Despite possibly large estimation errors due to statistical deficiencies, the framework is very useful for analyzing the relationship of the Japanese economy to the world economy. We find that Japan is special in the following four aspects. First, Japanese-owned firms have become increasingly dependent on the marketing activities of their foreign affiliates, rather than depending on cross-border exports by parent firms located in Japan. Second, the much smaller activities of Japanese affiliates of foreign firms (JAFF) relative to those of foreign affiliates of Japanese firms (FAJF) are apparent in terms of sales, value added, and employment, at both the macroeconomic and sectoral levels. Third, Japanese net sales to foreigners are consistently larger than cross-border net exports of Japan. Fourth, among the activities of FAJF, the importance of commercial FAJF is particularly large; these commercial FAJF handle a large portion of Japanese exports and imports. The paper concludes by discussing a number of statistical improvements required by the Japanese government in order to apply our analytical framework more rigorously.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 5670.
Date of creation: Jul 1996
Date of revision:
Publication status: published as Fukunari Kimura, Robert E. Baldwin. "Application of a Nationality-Adjusted Net Sales and Value- Added Framework: The Case of Japan," in Robert E. Baldwin, Robert E. Lipsey and J. David Richards, editors, "Geography and Ownership as Bases for Economic Accounting" University of Chicago Press (1998)
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Other versions of this item:
- Fukunari Kimura & Robert E. Baldwin, 1998. "Application of a Nationality-Adjusted Net Sales and Value- Added Framework: The Case of Japan," NBER Chapters, in: Geography and Ownership as Bases for Economic Accounting, pages 49-82 National Bureau of Economic Research, Inc.
- F1 - International Economics - - Trade
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- Kyoji Fukao & Keiko Ito, 2003.
"Foreign Direct Investment and Services Trade: The Case of Japan,"
in: Trade in Services in the Asia Pacific Region, NBER East Asia Seminar on Economics (EASE), Volume 11, pages 429-480
National Bureau of Economic Research, Inc.
- Fukao, Kyoji & Ito, Keiko, 2000. "Foreign Direct Investment and Service Trade: The Case of Japan," Discussion Paper Series a394, Institute of Economic Research, Hitotsubashi University.
- Mitsuyo Ando & Fukinari Kimura, 2003.
"The Formation of International Production and Distribution Networks in East Asia,"
NBER Working Papers
10167, National Bureau of Economic Research, Inc.
- Mitsuyo Ando & Fukunari Kimura, 2005. "The Formation of International Production and Distribution Networks in East Asia," NBER Chapters, in: International Trade in East Asia, NBER-East Asia Seminar on Economics, Volume 14, pages 177-216 National Bureau of Economic Research, Inc.
- Robert C. Feenstra, . "Facts And Fallacies About Foreign Direct Investment," Department of Economics 98-04, California Davis - Department of Economics.
- Robert E. Lipsey, 2009.
"Measuring International Trade in Services,"
in: International Trade in Services and Intangibles in the Era of Globalization, pages 27-70
National Bureau of Economic Research, Inc.
- Ito, Keiko & Fukao, Kyoji, 2005.
"Foreign direct investment and trade in Japan: An empirical analysis based on the Establishment and Enterprise Census for 1996,"
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Elsevier, vol. 19(3), pages 414-455, September.
- Ito, Keiko & Fukao, Kyoji, 2003. "Foreign Direct Investment and Trade in Japan: An Empirical Analysis Based on the Establishment and Enterprise Census for 1996," Discussion Paper Series a441, Institute of Economic Research, Hitotsubashi University.
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