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Adjusting to China Competition: Evidence from Japanese Plant-product-level Data

Author

Listed:
  • Flora Bellone

    (Université Côte d'Azur
    GREDEG CNRS)

  • Cilem Selin Hazir

    (Leibniz Institute of Ecological Urban and Regional Development)

  • Toshiyuki Matsuura

    (Keio Economic Observatory, Keio University)

Abstract

This study examines how the product mixes of Japanese manufacturing plants have been impacted by the rise of China imports over the period 1997-2014, and the extent that plants' local embeddedness mitigate this causal relationship. We find evidence that China import competition induced both product downsizing and product exit within Japanese manufacturing plants. Moreover, we find that those negative effects differ across plants according to various plant characteristics including the spatial organization of their parent firm. Finally, we show that both product survival and product sales are positively impacted by external agglomeration economies, but these effects are strong for standalone plants only, and almost non-existent for plants affiliated to spatially compact multi-unit firms.

Suggested Citation

  • Flora Bellone & Cilem Selin Hazir & Toshiyuki Matsuura, 2020. "Adjusting to China Competition: Evidence from Japanese Plant-product-level Data," GREDEG Working Papers 2020-45, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    • Handle: RePEc:gre:wpaper:2020-45
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Import competition; Product Portfolio; Local Product Relatedness;
    All these keywords.

    JEL classification:

    • F61 - International Economics - - Economic Impacts of Globalization - - - Microeconomic Impacts
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

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