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Japan’s participation in global value chains: splitting the IO table into production for export and domestic sale

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  • Koji Ito
  • Ivan Deseatnicov
  • Kyoji Fukao

Abstract

This paper examines Japan’s participation in global value chains (GVCs). To this end, we use plant-level data for Japan to split output in each industry in Japan’s manufacturing sector into output for export or domestic sale and create an extended multi-country input–output table (MIOT). We then compute trade in value added (TiVA) indicators to examine the participation of Japanese manufacturing plants in GVCs. Our estimates suggest that Japan’s forward participation in GVCs is lower than suggested by estimates computed from a traditional MIOT. We infer that this result is due to high cross-border production fragmentation as well as the large presence of Japanese multinational companies in global manufacturing and the high volume of intra-firm trade in Japan’s manufacturing sector. We conclude that considering firm heterogeneity in production for export and domestic sale in MIOTs provides a more accurate understanding of global production fragmentation.

Suggested Citation

  • Koji Ito & Ivan Deseatnicov & Kyoji Fukao, 2020. "Japan’s participation in global value chains: splitting the IO table into production for export and domestic sale," Economic Systems Research, Taylor & Francis Journals, vol. 32(2), pages 173-191, April.
  • Handle: RePEc:taf:ecsysr:v:32:y:2020:i:2:p:173-191
    DOI: 10.1080/09535314.2019.1657802
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    Cited by:

    1. Zhong, Zhangqi & Guo, Zhifang & Zhang, Jianwu, 2021. "Does the participation in global value chains promote interregional carbon emissions transferring via trade? Evidence from 39 major economies," Technological Forecasting and Social Change, Elsevier, vol. 169(C).
    2. Jingjing Huang & Yuan Zhong & Yabin Zhang, 2023. "Does Environmental Regulation of Cleaner Production Affect the Position of Enterprises in Global Value Chains? A Quasi-Natural Experiment Based on the Implementation of Cleaner Production," Sustainability, MDPI, vol. 15(13), pages 1-29, July.

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