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The Impact of Import Competition on Japanese Manufacturing Employment

  • Eiichi Tomiura

    (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan)

Although previous studies of the effect of imports on Japanese employment relied on relatively aggregate data, the variability among industries is substantial within each two-digit sector. This paper exploits recently available longitudinal data of 390 manufacturing industries and controls for industry-specific factors at the four-digit level. This paper finds the significant impact of import price changes on Japanese employment. The estimates suggest that substantial share of average employment decline can be accounted for by the intensified import competition and that the employment sensitivity increases with industry import share. All these findings are significant especially for the yen appreciating recession years.

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Paper provided by Research Institute for Economics & Business Administration, Kobe University in its series Discussion Paper Series with number 120.

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Length: 22 pages
Date of creation: Apr 2001
Date of revision:
Handle: RePEc:kob:dpaper:120
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  1. Higuchi, Yoshio, 1989. "Japan's changing wage structure: The impact of internal factors and international competition," Journal of the Japanese and International Economies, Elsevier, vol. 3(4), pages 480-499, December.
  2. Jose Manuel Campa & Linda S. Goldberg, 1998. "Employment versus wage adjustment and the U.S. dollar," Staff Reports 56, Federal Reserve Bank of New York.
  3. Robert C. Feenstra, 1996. "U.S. Imports, 1972-1994: Data and Concordances," NBER Working Papers 5515, National Bureau of Economic Research, Inc.
  4. Brunello, Giorgio, 1990. "Real exchange rate variability and Japanese industrial employment," Journal of the Japanese and International Economies, Elsevier, vol. 4(2), pages 121-138, June.
  5. William H. Branson & James Love, 1988. "U.S. Manufacturing and the Real Exchange Rate," NBER Chapters, in: Misalignment of Exchange Rates: Effects on Trade and Industry, pages 241-276 National Bureau of Economic Research, Inc.
  6. Rebick, Marcus E., 1999. "Trade and the Wage Structure in the Presence of Price Differentials in the Product Market: The Japanese Labor Market 1965-1990," Journal of the Japanese and International Economies, Elsevier, vol. 13(1), pages 22-43, March.
  7. Simon Burgess & Michael M. Knetter, 1996. "An International Comparison of Employment Adjustment to Exchange Rate Fluctuations," NBER Working Papers 5861, National Bureau of Economic Research, Inc.
  8. Ana L. Revenga, 1992. "Exporting Jobs?The Impact of Import Competition on Employment and Wages in U. S. Manufacturing," The Quarterly Journal of Economics, Oxford University Press, vol. 107(1), pages 255-284.
  9. Dekle, Robert, 1998. "The yen and Japanese manufacturing employment," Journal of International Money and Finance, Elsevier, vol. 17(5), pages 785-801, October.
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