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

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  • Shuhei Nishitateno

Abstract

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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  • Shuhei Nishitateno, 2015. "Network Effects on Trade in Intermediate Goods: Evidence from the Automobile Industry," The Japanese Economic Review, Japanese Economic Association, vol. 66(3), pages 354-370, September.
    • Handle: RePEc:bla:jecrev:v:66:y:2015:i:3:p:354-370
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    Cited by:

    1. Shuhei Nishitateno & Hayato Umetani, 2023. "Heterogeneous effects of Aid‐for‐Trade on donor exports: Why is Japan different?," Review of International Economics, Wiley Blackwell, vol. 31(3), pages 1117-1145, August.
    2. INUI Tomohiko & KODAMA Naomi, 2016. "The Effects of Japanese Customer Firms' Overseas Outsourcing on Supplier Firms' Performance," Discussion papers 16106, Research Institute of Economy, Trade and Industry (RIETI).
    3. Shuhei Nishitateno, 2024. "Does official development assistance benefit the donor economy? New evidence from Japanese overseas infrastructure projects," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 31(4), pages 1037-1065, August.
    4. Harada, Kimie & Nishitateno, Shuhei, 2021. "Measuring trade creation effects of free trade agreements: Evidence from wine trade in East Asia," Journal of Asian Economics, Elsevier, vol. 74(C).
    5. Erginbay Ugurlu & Irena Jindrichovska, 2019. "Estimating Gravity Model in the Czech Republic: Empirical Study of Impact of IFRS on Czech International Trade," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 265-281.

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    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production

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