IDEAS home Printed from https://ideas.repec.org/a/eee/jjieco/v51y2019icp1-18.html
   My bibliography  Save this article

The effect of an increase in imports from China on local labor markets in Japan

Author

Listed:
  • Taniguchi, Mina

Abstract

I analyze the effects of increased imports from China on Japanese prefecture-level local labor markets from 1995 to 2007. This paper presents the evidence that the growth in imports from China positively affected manufacturing employment growth at the prefecture level in Japan. This result gives contrast to the finding of Autor, Dorn and Hanson (2013, AER) for local labor markets in the United States. Furthermore, estimations with decomposed types of the imported goods suggest that an increase in intermediate imports attributes to the positive effects of import growth from China.

Suggested Citation

  • Taniguchi, Mina, 2019. "The effect of an increase in imports from China on local labor markets in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 51(C), pages 1-18.
    • Handle: RePEc:eee:jjieco:v:51:y:2019:i:c:p:1-18
    DOI: 10.1016/j.jjie.2018.09.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0889158318300686
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jjie.2018.09.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Petia Topalova, 2010. "Factor Immobility and Regional Impacts of Trade Liberalization: Evidence on Poverty from India," American Economic Journal: Applied Economics, American Economic Association, vol. 2(4), pages 1-41, October.
    2. Naohiko Ijiri & Tomohiko Inui & Toshiyuki Matsuura, 2010. "Outsourcing to China," Palgrave Macmillan Books, in: David Greenaway & Chris Milner & Shujie Yao (ed.), China and the World Economy, chapter 7, pages 135-164, Palgrave Macmillan.
    3. Elhanan Helpman & Paul Krugman, 1987. "Market Structure and Foreign Trade: Increasing Returns, Imperfect Competition, and the International Economy," MIT Press Books, The MIT Press, edition 1, volume 1, number 026258087x, December.
    4. Lee Branstetter, 2006. "China's Embrace of Globalisation," Working Papers id:640, eSocialSciences.
    5. 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.
    6. Bernard, Andrew B. & Jensen, J. Bradford & Schott, Peter K., 2006. "Survival of the best fit: Exposure to low-wage countries and the (uneven) growth of U.S. manufacturing plants," Journal of International Economics, Elsevier, vol. 68(1), pages 219-237, January.
    7. Balsvik, Ragnhild & Jensen, Sissel & Salvanes, Kjell G., 2015. "Made in China, sold in Norway: Local labor market effects of an import shock," Journal of Public Economics, Elsevier, vol. 127(C), pages 137-144.
    8. Pol Antràs & Teresa C. Fort & Felix Tintelnot, 2017. "The Margins of Global Sourcing: Theory and Evidence from US Firms," American Economic Review, American Economic Association, vol. 107(9), pages 2514-2564, September.
    9. Feenstra, Robert C. & Hanson, Gordon H., 1997. "Foreign direct investment and relative wages: Evidence from Mexico's maquiladoras," Journal of International Economics, Elsevier, vol. 42(3-4), pages 371-393, May.
    10. 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.
    11. Wolfgang Dauth & Sebastian Findeisen & Jens Suedekum, 2014. "The Rise Of The East And The Far East: German Labor Markets And Trade Integration," Journal of the European Economic Association, European Economic Association, vol. 12(6), pages 1643-1675, December.
    12. Gene M. Grossman & Esteban Rossi-Hansberg, 2008. "Trading Tasks: A Simple Theory of Offshoring," American Economic Review, American Economic Association, vol. 98(5), pages 1978-1997, December.
    13. Daron Acemoglu & David Autor & David Dorn & Gordon H. Hanson & Brendan Price, 2016. "Import Competition and the Great US Employment Sag of the 2000s," Journal of Labor Economics, University of Chicago Press, vol. 34(S1), pages 141-198.
    14. Kiyota, Kozo & Maruyama, Sawako, 2017. "ICT, offshoring, and the demand for part-time workers: The case of Japanese manufacturing," Journal of Asian Economics, Elsevier, vol. 48(C), pages 75-86.
    15. David H. Autor & David Dorn & Gordon H. Hanson, 2013. "The China Syndrome: Local Labor Market Effects of Import Competition in the United States," American Economic Review, American Economic Association, vol. 103(6), pages 2121-2168, October.
    16. Chiquiar, Daniel, 2008. "Globalization, regional wage differentials and the Stolper-Samuelson Theorem: Evidence from Mexico," Journal of International Economics, Elsevier, vol. 74(1), pages 70-93, January.
    17. Bernard, Andrew B. & Bradford Jensen, J., 1999. "Exceptional exporter performance: cause, effect, or both?," Journal of International Economics, Elsevier, vol. 47(1), pages 1-25, February.
    18. Biscourp, Pierre & Kramarz, Francis, 2007. "Employment, skill structure and international trade: Firm-level evidence for France," Journal of International Economics, Elsevier, vol. 72(1), pages 22-51, May.
    19. Hitoshi Sasaki, 2007. "Import Competition and Manufacturing Employment in Japan," Bank of Japan Working Paper Series 07-E-25, Bank of Japan.
    20. Justin R. Pierce & Peter K. Schott, 2016. "The Surprisingly Swift Decline of US Manufacturing Employment," American Economic Review, American Economic Association, vol. 106(7), pages 1632-1662, July.
    21. Mion, Giordano & Zhu, Linke, 2013. "Import competition from and offshoring to China: A curse or blessing for firms?," Journal of International Economics, Elsevier, vol. 89(1), pages 202-215.
    22. Claudia Goldin & Lawrence F. Katz, 2007. "Long-Run Changes in the Wage Structure: Narrowing, Widening, Polarizing," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 38(2), pages 135-168.
    23. Krugman, Paul R., 2000. "Technology, trade and factor prices," Journal of International Economics, Elsevier, vol. 50(1), pages 51-71, February.
    24. Tanaka, Ayumu, 2013. "The causal effects of exporting on domestic workers: A firm-level analysis using Japanese data," Japan and the World Economy, Elsevier, vol. 28(C), pages 13-23.
    25. Paul R. Krugman, 2008. "Trade and Wages, Reconsidered," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 39(1 (Spring), pages 103-154.
    26. Mary Amiti & Caroline Freund, 2010. "The Anatomy of China's Export Growth," NBER Chapters, in: China's Growing Role in World Trade, pages 35-56, National Bureau of Economic Research, Inc.
    27. Janet Koech & Michael Sposi, 2013. "Value-added data recast the U.S.-China trade deficit," Economic Letter, Federal Reserve Bank of Dallas, vol. 8(5), July.
    28. Head, Keith & Ries, John, 2002. "Offshore production and skill upgrading by Japanese manufacturing firms," Journal of International Economics, Elsevier, vol. 58(1), pages 81-105, October.
    29. Brian K. Kovak, 2013. "Regional Effects of Trade Reform: What Is the Correct Measure of Liberalization?," American Economic Review, American Economic Association, vol. 103(5), pages 1960-1976, August.
    30. John Shea, 1997. "Instrument Relevance in Multivariate Linear Models: A Simple Measure," The Review of Economics and Statistics, MIT Press, vol. 79(2), pages 348-352, May.
    31. Michal FABINGER & SHIBUYA Yoko & TANIGUCHI Mina, 2017. "International Influences on Japanese Supply Chains," Discussion papers 17022, Research Institute of Economy, Trade and Industry (RIETI).
    32. Sakurai, Kojiro, 2004. "How does trade affect the labor market? Evidence from Japanese manufacturing," Japan and the World Economy, Elsevier, vol. 16(2), pages 139-161, April.
    33. George J. Borjas & Valerie A. Ramey, 1995. "Foreign Competition, Market Power, and Wage Inequality," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(4), pages 1075-1110.
    34. Vicente Donoso & V�ctor Mart�n & Asier Minondo, 2015. "Do Differences in the Exposure to Chinese Imports Lead to Differences in Local Labour Market Outcomes? An Analysis for Spanish Provinces," Regional Studies, Taylor & Francis Journals, vol. 49(10), pages 1746-1764, October.
    35. Ana L. Revenga, 1992. "Exporting Jobs?The Impact of Import Competition on Employment and Wages in U. S. Manufacturing," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(1), pages 255-284.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Flora Bellone & Cilem Selin Hazir & Toshiyuki Matsuura, 2020. "Adjusting to China competition: Evidence from Japanese plant-product-level data," Working Papers hal-03086387, HAL.
    2. Ahn, JaeBin & Choi, Moon Jung, 2020. "From firm-level imports to aggregate productivity: Evidence from Korean manufacturing firm data," Japan and the World Economy, Elsevier, vol. 56(C).
    3. Kozo Kiyota, 2023. "Spatially uneven pace of deindustrialisation within a country," The World Economy, Wiley Blackwell, vol. 46(7), pages 2187-2230, July.
    4. Theresa M. Greaney & Kozo Kiyota, 2020. "The gravity model and trade in intermediate inputs," The World Economy, Wiley Blackwell, vol. 43(8), pages 2034-2049, August.
    5. Endoh, Masahiro, 2023. "The China shock and job reallocation in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 68(C).
    6. Kagitani, Koichi & Harimaya, Kozo, 2020. "Does international trade competition influence candidates and voters? The case of Japanese Lower House elections," Journal of the Japanese and International Economies, Elsevier, vol. 57(C).
    7. SAITO Yukiko & KAINUMA Shuhei & Michal FABINGER, 2020. "China's Impact on Regional Employment: Propagation through Supply Chains and Co-agglomeration Pattern," Discussion papers 20054, Research Institute of Economy, Trade and Industry (RIETI).
    8. Kozo Kiyota & Sawako Maruyama & Mina Taniguchi, 2021. "The China syndrome: A cross‐country evidence," The World Economy, Wiley Blackwell, vol. 44(9), pages 2758-2792, September.
    9. Hayakawa, Kazunobu & Ito, Tadashi & Urata, Shujiro, 2021. "Impacts of increased Chinese imports on Japan’s labor market," Japan and the World Economy, Elsevier, vol. 59(C).
    10. Ahn, JaeBin & Greaney, Theresa M. & Kiyota, Kozo, 2022. "Political conflict and angry consumers: Evaluating the regional impacts of a consumer boycott on travel services trade," Journal of the Japanese and International Economies, Elsevier, vol. 65(C).
    11. Muftah Faraj & Murad Bein, 2022. "Sustainability of Local Labour Market in South Africa: The Implications of Imports Competition from China," Sustainability, MDPI, vol. 14(12), pages 1-18, June.
    12. NI Bin & KATO Hayato & LIU Yang, 2020. "Does It Matter Where You Invest? The Impact of FDI on Domestic Job Creation and Destruction," Discussion papers 20008, Research Institute of Economy, Trade and Industry (RIETI).
    13. Philippe Aghion & Antonin Bergeaud & Matthieu Lequien & Marc J. Melitz & Thomas Zuber, 2024. "Opposing Firm-Level Responses to the China Shock: Output Competition versus Input Supply," American Economic Journal: Economic Policy, American Economic Association, vol. 16(2), pages 249-269, May.
    14. Zhi, Yan & Bao, Di & Luo, Changyuan, 2019. "The China effect: Evidence from data at firm level in Thailand," Economic Systems, Elsevier, vol. 43(2), pages 1-1.
    15. HAYAKAWA Kazunobu & ITO Tadashi & URATA Shujiro, 2022. "Impacts of Increased Chinese Imports on Japan’s Labor Market: Firm and Regional Aspects," Discussion papers 22037, Research Institute of Economy, Trade and Industry (RIETI).
    16. Kazunobu Hayakawa & Tadashi Ito & Shujiro Urata, 2021. "Labor Market Impacts of Import Penetration from China and Regional Trade Agreement Partners: The Case of Japan," The Developing Economies, Institute of Developing Economies, vol. 59(3), pages 306-323, September.
    17. MATSUURA Toshiyuki, 2019. "Heterogeneous Impact of Import Competition on Firm Organization: Evidence from Japanese firm-level data," Discussion papers 19086, Research Institute of Economy, Trade and Industry (RIETI).
    18. Hayakawa, Kazunobu, 2022. "Assessing the impact of China shocks on intra-ASEAN trade," Journal of the Japanese and International Economies, Elsevier, vol. 65(C).
    19. Shuhei Kainuma & Yukiko U. Saito, 2022. "China's impact on regional employment: Propagation through input–output linkages and co‐location patterns," The World Economy, Wiley Blackwell, vol. 45(11), pages 3559-3601, November.
    20. Toshiyuki Matsuura, 2022. "Heterogeneous impact of import competition on firm organisation: Evidence from Japanese firm‐level data," The World Economy, Wiley Blackwell, vol. 45(7), pages 2251-2269, July.
    21. Egger, Peter H. & Kaynak, Pinar & Zoller-Rydzek, Benedikt, 2020. "Indirect effects of trade shocks on Turkish local labor markets," Regional Science and Urban Economics, Elsevier, vol. 83(C).
    22. Flora Bellone & Cilem Selin Hazir & Toshiyuki Matsuura, 2022. "Adjusting to China competition: Evidence from Japanese plant‐product‐level data," Review of International Economics, Wiley Blackwell, vol. 30(3), pages 732-763, August.
    23. Akira Sasahara, 2022. "The Empirics of the China Trade Shock: A Summary of Estimation Methods and A Literature Review," Keio-IES Discussion Paper Series 2022-008, Institute for Economics Studies, Keio University.
    24. Bin Ni & Hayato Kato & Yang Liu, 2023. "Does it matter where you invest? The impact of foreign direct investments on domestic job creation and destruction," The World Economy, Wiley Blackwell, vol. 46(1), pages 135-152, January.
    25. Endoh, Masahiro, 2021. "The effect of import competition on labor income inequality through firm and worker heterogeneity in the Japanese manufacturing sector," Japan and the World Economy, Elsevier, vol. 59(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. David H. Autor & David Dorn & Gordon H. Hanson, 2016. "The China Shock: Learning from Labor-Market Adjustment to Large Changes in Trade," Annual Review of Economics, Annual Reviews, vol. 8(1), pages 205-240, October.
    2. Patrick Arni & Pether H. Egger & Katharina Erhardt & Matthias Gubler & Philip Sauré, 2024. "Heterogeneous Impacts of Trade Shocks on Workers," Working Papers 2409, Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz.
    3. David Autor & Caroline Chin & Anna Salomons & Bryan Seegmiller, 2024. "New Frontiers: The Origins and Content of New Work, 1940–2018," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 139(3), pages 1399-1465.
    4. Muendler, Marc-Andreas, 2017. "Trade, technology, and prosperity: An account of evidence from a labor-market perspective," WTO Staff Working Papers ERSD-2017-15, World Trade Organization (WTO), Economic Research and Statistics Division.
    5. Akira Sasahara, 2022. "The Empirics of the China Trade Shock: A Summary of Estimation Methods and A Literature Review," Keio-IES Discussion Paper Series 2022-008, Institute for Economics Studies, Keio University.
    6. Sónia Cabral & Pedro S. Martins & João Pereira dos Santos & Mariana Tavares, 2021. "Collateral Damage? Labour Market Effects of Competing with China—at Home and Abroad," Economica, London School of Economics and Political Science, vol. 88(350), pages 570-600, April.
    7. David Hummels & Jakob R. Munch & Chong Xiang, 2018. "Offshoring and Labor Markets," Journal of Economic Literature, American Economic Association, vol. 56(3), pages 981-1028, September.
    8. Stephen J. Redding, 2020. "Trade and Geography," NBER Working Papers 27821, National Bureau of Economic Research, Inc.
    9. HASHIMOTO Yuki, 2020. "Global Competition, Worker Retention, and Immigrant Employment in Manufacturing SMEs," Discussion papers 20071, Research Institute of Economy, Trade and Industry (RIETI).
    10. Kozo Kiyota & Sawako Maruyama & Mina Taniguchi, 2021. "The China syndrome: A cross‐country evidence," The World Economy, Wiley Blackwell, vol. 44(9), pages 2758-2792, September.
    11. Mestieri, Martí & Basco, Sergi & Smagghue, Gabriel & Liegey, Maxime, 2020. "The Heterogeneous Effects of Trade across Occupations: A Test of the Stolper-Samuelson Theorem," CEPR Discussion Papers 15186, C.E.P.R. Discussion Papers.
    12. Erling Barth & Henning Finseraas & Anders Kjelsrud & Kalle Moene, 2023. "Hit by the Silk Road: how wage coordination in Europe mitigates the China shock," Scandinavian Journal of Economics, Wiley Blackwell, vol. 125(1), pages 32-72, January.
    13. Flora Bellone & Cilem Selin Hazir & Toshiyuki Matsuura, 2022. "Adjusting to China competition: Evidence from Japanese plant‐product‐level data," Review of International Economics, Wiley Blackwell, vol. 30(3), pages 732-763, August.
    14. Costinot, Arnaud & Adao, Rodrigo & Carrillo, Paul & Donaldson, Dave & Pomeranz, Dina, 2020. "International Trade and Earnings Inequality: A New Factor Content Approach," CEPR Discussion Papers 15598, C.E.P.R. Discussion Papers.
    15. Sofia Torreggiani & Antonio Andreoni, 2019. "Dancing with dragons: Chinese import penetration and the performances of manufacturing firms in South Africa," WIDER Working Paper Series wp-2019-63, World Institute for Development Economic Research (UNU-WIDER).
    16. De Lyon, Josh & Pessoa, Joao Paulo, 2021. "Worker and firm responses to trade shocks: The UK-China case," European Economic Review, Elsevier, vol. 133(C).
    17. Carmine Ornaghi & Ilke Van Beveren & Stijn Vanormelingen, 2021. "The impact of service and goods offshoring on employment: Firm‐level evidence," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 54(2), pages 677-711, May.
    18. Mansour, Hani & Medina, Pamela & Velásquez, Andrea, 2022. "Import competition and gender differences in labor reallocation," Labour Economics, Elsevier, vol. 76(C).
    19. 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.
    20. Balsvik, Ragnhild & Jensen, Sissel & Salvanes, Kjell G., 2015. "Made in China, sold in Norway: Local labor market effects of an import shock," Journal of Public Economics, Elsevier, vol. 127(C), pages 137-144.

    More about this item

    Keywords

    International trade; Local labor markets; Import competition; Intermediate imports;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jjieco:v:51:y:2019:i:c:p:1-18. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/622903 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.