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Network Effects on Trade in Intermediate Goods: Evidence from the Automobile Industry

Listed author(s):
  • Shuhei Nishitateno

type="main"> Growing production fragmentation makes the analysis of network effects on trade in intermediate goods more important than ever. The present study measures network effects on auto parts exports from 6 major auto producing countries using a panel data set covering 49 destinations and 31 products from 2002 to 2008. In contrast to prior research, the present study finds that in the case of Japanese automakers, overseas production by subsidiary plants is less important in determining auto parts exports from Japan than it is for the other major auto producing countries. Such uniqueness could be led by the higher reliance on domestic procurements of overseas subsidiaries of Japanese automakers as a result of the transfer of the vertical networks between automakers and parts suppliers formed in Japan.

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File URL: http://hdl.handle.net/10.1111/jere.12049
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Article provided by Japanese Economic Association in its journal Japanese Economic Review.

Volume (Year): 66 (2015)
Issue (Month): 3 (September)
Pages: 354-370

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Handle: RePEc:bla:jecrev:v:66:y:2015:i:3:p:354-370
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