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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- Mitsuyo Ando & Fukunari Kimura, 2005.
"The Formation of International Production and Distribution Networks in East Asia,"
in: International Trade in East Asia, NBER-East Asia Seminar on Economics, Volume 14, pages 177-216
National Bureau of Economic Research, Inc.
- 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.
- 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.
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