The Rise of China and Sustained Recovery of Japan
After prolonged recessions, the Japanese economy had recovered from the crisis in the first half of the 2000s and has recorded sustained growth in the last several years. Tremendous structural changes during and after the financial crisis were one of the main driving forces for the recovery. However, dramatic increases in exports were another. In particular, increases of Japanese exports to China were substantial in the 2000s and supported the recovery of the Japanese economy from its demand side. The purpose of this paper is to examine the role of the exports to China for the recovery in the 2000s. The dependence of the Japanese export sectors on the Chinese economy has risen in the past ten years. China is now almost surpassing the United States as destination of Japanese exports. Vector autoregressions (VARs) show that the Japanese production was caused by exports to the United States until the mid-1990s but was caused by exports to China after the late 1990s. However, the effects on the production were highly different across firms. The increased exports to China were beneficial for the recovery of manufacturing industries with advanced technology. Their impacts were, in contrast, insignificant for the recovery of labor-intensive small firms and non-manufacturing firms. Consequently, the sustained growth in the last several years was accompanied by widening inequalities across firms.
|Date of creation:||Sep 2008|
|Date of revision:|
|Contact details of provider:|| Postal: Hongo 7-3-1, Bunkyo-ku, Tokyo 113-0033|
Web page: http://www.cirje.e.u-tokyo.ac.jp/index.html
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Elena Ianchovichina & Terrie Walmsley, 2005.
"Impact of China's WTO Accession on East Asia,"
Contemporary Economic Policy,
Western Economic Association International, vol. 23(2), pages 261-277, 04.
- David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June.
- Alan G. Ahearne & John G. Fernald & Prakash Loungani & John W. Schindler, 2003.
"China and emerging Asia: comrades or competitors?,"
International Finance Discussion Papers
789, Board of Governors of the Federal Reserve System (U.S.).
- Etsuro Shioji, 1997.
"Identifying monetary policy shocks in Japan,"
Economics Working Papers
216, Department of Economics and Business, Universitat Pompeu Fabra.
- Shioji, Etsuro, 2000. "Identifying Monetary Policy Shocks in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 14(1), pages 22-42, March.
- Dani Rodrik, 2006.
"What's So Special about China's Exports?,"
NBER Working Papers
11947, National Bureau of Economic Research, Inc.
- Nakashima, Kiyotaka, 2006.
"The Bank of Japan's operating procedures and the identification of monetary policy shocks: A reexamination using the Bernanke-Mihov approach,"
Journal of the Japanese and International Economies,
Elsevier, vol. 20(3), pages 406-433, September.
- Nakashima, Kiyotaka, 2005. "The Bank of Japan's Operating Procedures and the Identification of Monetary Policy Shocks: A Reexamination using the Bernanke-Mihov Approach," MPRA Paper 70687, University Library of Munich, Germany.
- David Weinstein & Christian Broda, 2008.
"Exporting Deflation? Chinese Exports and Japanese Prices,"
NBER Working Papers
13942, National Bureau of Economic Research, Inc.
- Christian Broda & David E. Weinstein, 2010. "Exporting Deflation? Chinese Exports and Japanese Prices," NBER Chapters, in: China's Growing Role in World Trade, pages 203-227 National Bureau of Economic Research, Inc.
- David E. Weinstein & Christian Broda, 2008. "Exporting deflation? Chinese exports and Japanese prices," Working Paper Series 2008-29, Federal Reserve Bank of San Francisco.
- R. Anton Braun & Etsuro Shioji, 2003.
"Monetary Policy and the Term Structure of Interest Rates in Japan,"
CIRJE-F-252, CIRJE, Faculty of Economics, University of Tokyo.
- Braun, R. Anton & Shioji, Etsuro, 2006. "Monetary Policy and the Term Structure of Interest Rates in Japan," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 38(1), pages 141-162, February.
- Bayoumi, Tamim, 2001.
"The morning after: explaining the slowdown in Japanese growth in the 1990s,"
Journal of International Economics,
Elsevier, vol. 53(2), pages 241-259, April.
- Tamim Bayoumi, 1999. "The Morning After; Explaining the Slowdown in Japanese Growth in the 1990's," IMF Working Papers 99/13, International Monetary Fund.
- Tamim Bayoumi, 1999. "The Morning After: Explaining the Slowdown in Japanese Growth in the 1990s," NBER Working Papers 7350, National Bureau of Economic Research, Inc.
- Bayoumi, Tamim, 2000. "The Morning After: Explaining The Slowdown In Japanese Growth In The 1990s," CEPR Discussion Papers 2436, C.E.P.R. Discussion Papers.
- Alan G. Ahearne & John G. Fernald & Prakash Loungani & John W. Schindler, 2006. "Flying geese or sitting ducks: China’s impact on the trading fortunes of other Asian economies," International Finance Discussion Papers 887, Board of Governors of the Federal Reserve System (U.S.).
- Barry Eichengreen & Yeongseop Rhee & Hui Tong, 2004. "The Impact of China on the Exports of Other Asian Countries," NBER Working Papers 10768, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:tky:fseres:2008cf589. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CIRJE administrative office)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.