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Japan's welfare gains through globalization: An evidence from Japan's manufacturing sector

Author

Listed:
  • Tadashi Ito

    (Faculty of International Social Science, Gakushuin University)

  • Toshiyuki Matsuura

    (Keio Economic Observatory, Keio University)

Abstract

Welfare gain through international trade is a cornerstone of international economics literature. However, it is only recently that the data and the methodologies become available to empirically assess such welfare gain. Building on the recently developed methodologies of estimating elasticity of substitution and computing welfare gains from trade, we estimate welfare gains of Japan from its trade liberalization in manufacturing sector. To do this as precisely as possible, the elasticities of substitution for HS 9-digit product code are estimated for various periods of time. The analyses show that Japan's welfare gains from trade liberalization took place especially from the 1990s, and reached eleven percent vis-a-vis the autarky situation.

Suggested Citation

  • Tadashi Ito & Toshiyuki Matsuura, 2017. "Japan's welfare gains through globalization: An evidence from Japan's manufacturing sector," Keio-IES Discussion Paper Series 2017-002, Institute for Economics Studies, Keio University.
    • Handle: RePEc:keo:dpaper:2017-002
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    References listed on IDEAS

    as
    1. Feenstra, Robert C, 1994. "New Product Varieties and the Measurement of International Prices," American Economic Review, American Economic Association, vol. 84(1), pages 157-177, March.
    2. Soderbery, Anson, 2015. "Estimating import supply and demand elasticities: Analysis and implications," Journal of International Economics, Elsevier, vol. 96(1), pages 1-17.
    3. Costas Arkolakis & Arnaud Costinot & Andres Rodriguez-Clare, 2012. "New Trade Models, Same Old Gains?," American Economic Review, American Economic Association, vol. 102(1), pages 94-130, February.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Trade Liberalization; Welfare gains; Japan;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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