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Impact of Growing Imports: A comparison of international and domestic firms in the Japanese manufacturing industry (Japanese)

  • ITO Koji
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Emerging economies, with steady and high growth, have been increasing their share of the world trade, as well as strengthening their export competitiveness in industries where developed countries have captured the world market. Based on recent trade theory and empirics, the commencement of exporting is a possible countermeasure against increasing import volume from emerging economies, aside from the downsizing of production or market exits. However, this is not applicable if the influence of imports is broadly spread across firms in the same industry. Thus, this paper confirms the impact of imports on Japanese manufacturing firms classified by their internationalization status. In concrete terms, we classify the data from the "Basic Survey of Japanese Business Structure and Activities," implemented by the Ministry of Economy, Trade and Industry, into firms that are in charge of internationalization (exporting, importing, and having foreign affiliates) and others, and examine the significance of imports from three areas (Asian countries, other developing countries, and developed countries) on the variability in the number of employees, real turnover, etc. The result shows that the impact of imports from all three areas on firms in charge of internationalization is weaker than the other firms in terms of employees, implying the potential of internationalization to weaken the influence of imports.

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Paper provided by Research Institute of Economy, Trade and Industry (RIETI) in its series Discussion Papers (Japanese) with number 13034.

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Length: 44 pages
Date of creation: May 2013
Date of revision:
Handle: RePEc:eti:rdpsjp:13034
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  1. J. Bradford Jensen & Andrew Bernard & Peter Schott, 2005. "Survival of the Best Fit: Exposure to Low-Wage Countries and the (Uneven) Growth of U.S. Manufacturing Plants," Working Papers 05-19, Center for Economic Studies, U.S. Census Bureau.
  2. Castro, Lucio & Olarreaga, Marcelo & Saslavsky, Daniel, 2007. "The impact of trade with China and India on Argentina's manufacturing employment," Policy Research Working Paper Series 4153, The World Bank.
  3. Maria Guadalupe & Julie Wulf, 2008. "The Flattening Firm and Product Market Competition: The Effect of Trade Liberalization," NBER Working Papers 14491, National Bureau of Economic Research, Inc.
  4. Joachim Wagner, 2007. "Exports and Productivity: A Survey of the Evidence from Firm-level Data," The World Economy, Wiley Blackwell, vol. 30(1), pages 60-82, 01.
  5. Raphael Anton Auer & Andreas M. Fischer, 2008. "The Effect of Low-Wage Import Competition on U.S. Inflationary Pressure," Working Papers 2008-18, Swiss National Bank.
  6. Tomiura, Eiichi, 2003. "The impact of import competition on Japanese manufacturing employment," Journal of the Japanese and International Economies, Elsevier, vol. 17(2), pages 118-133, June.
  7. Anna Maria MAYDA & NAKANE Masato & STEINBERG, Chad & YAMADA Hiroyuki, 2012. "Exposure to Low-wage Country Imports and the Growth of Japanese Manufacturing Plants," Discussion papers 12038, Research Institute of Economy, Trade and Industry (RIETI).
  8. Álvarez, Roberto & Claro, Sebastián, 2009. "David Versus Goliath: The Impact of Chinese Competition on Developing Countries," World Development, Elsevier, vol. 37(3), pages 560-571, March.
  9. Greenaway, David & Gullstrand, Joakim & Kneller, Richard, 2008. "Surviving globalisation," Journal of International Economics, Elsevier, vol. 74(2), pages 264-277, March.
  10. David Greenaway & Richard Kneller, 2007. "Firm heterogeneity, exporting and foreign direct investment," Economic Journal, Royal Economic Society, vol. 117(517), pages F134-F161, 02.
  11. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
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