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Offshoring and Trade in East Asia: A Statistical Analysis

Author

Listed:
  • Ryuhei Wakasugi

    (Institute of Economic Research, Kyoto University, Yoshida-honmachi, Sakyo-ku, Kyoto 606-8501, Japan.)

  • Banri Ito

    (Research Institute of Economy, Trade, and Industry, 1-4-2 Kasumigaseki Chiyodaku, Tokyo 100-0013, Japan.)

  • Eiichi Tomiura

    (Department of Economics, Yokohama National University, 79-4 Tokiwa-dai, Hodogaya-ku, Yokohama City 240-8501, Japan.)

Abstract

Japanese shares of export and manufacturing value-added in the global market have declined significantly, whereas those in China have risen sharply. This paper examines how recent increases in offshoring by Japanese firms relates to the changes in the composition of export, the structure of national production, and the international distribution of manufacturing value-added in Japan, China, East Asian countries, the United States, and European countries, on the basis of our original survey of Japanese firm's offshoring and the statistics of export and manufacturing production of these countries. It also discusses how the net cost saving of offshoring due to wage differentials and institutional factors will affect the sustainability of Japanese offshoring. (c) 2008 The Earth Institute at Columbia University and the Massachusetts Institute of Technology.

Suggested Citation

  • Ryuhei Wakasugi & Banri Ito & Eiichi Tomiura, 2008. "Offshoring and Trade in East Asia: A Statistical Analysis," Asian Economic Papers, MIT Press, vol. 7(3), pages 101-124, Fall.
    • Handle: RePEc:tpr:asiaec:v:7:y:2008:i:3:p:101-124
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    References listed on IDEAS

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    2. Kozo Kiyota & Sawako Maruyama, 2018. "On the Demand for Female Workers in Japan: The Role of ICT and Offshoring," Asian Economic Papers, MIT Press, vol. 17(2), pages 25-46, Summer.
    3. Ogawa, Kazuo & Saito, Mika & Tokutsu, Ichiro, 2017. "Did divine wind rescue Japan out of the lost decade?," Journal of the Japanese and International Economies, Elsevier, vol. 44(C), pages 39-51.
    4. KWON Hyeog Ug, 2012. "Offshoring of Japanese Small and Medium Enterprises (Japanese)," Discussion Papers (Japanese) 12004, Research Institute of Economy, Trade and Industry (RIETI).
    5. Mr. Ichiro Tokutsu & Mr. Kazuo Ogawa & Mika Saito, 2012. "Japan out of the Lost Decade: Divine Wind or Firms’ Effort?," IMF Working Papers 2012/171, International Monetary Fund.
    6. Lurong Chen & Philippe De Lombaerde & Ludo Cuyvers, 2017. "Markets Matter: The Potential of Intra-Regional Trade in ASEAN and Its Implications for Asian Regionalism," Asian Economic Papers, MIT Press, vol. 16(2), pages 1-19, Summer.
    7. Françoise Lemoine, 2010. "Past Successes and New Challenges: China's Foreign Trade at a Turning Point," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 18(3), pages 1-23, May.
    8. Tomeczek, Artur F., 2022. "The evolution of Japanese keiretsu networks: A review and text network analysis of their perceptions in economics," Japan and the World Economy, Elsevier, vol. 62(C).
    9. Françoise Lemoine, 2013. "From foreign trade to international investment: a new step in China’s integration with the world economy," Economic Change and Restructuring, Springer, vol. 46(1), pages 25-43, March.
    10. Judith M. Dean & Mary E. Lovely & Jesse Mora, 2017. "Decomposing China-Japan-U.S. Trade: Vertical specialization, ownership, and organizational form," World Scientific Book Chapters, in: Mary E Lovely (ed.), International Economic Integration and Domestic Performance, chapter 7, pages 119-132, World Scientific Publishing Co. Pte. Ltd..
    11. Matthew Cole & Robert Elliott & Toshihiro Okubo, 2014. "International environmental outsourcing," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 150(4), pages 639-664, November.
    12. OGAWA Kazuo & TOKUTSU Ichiro, 2015. "Hysteresis in Japanese Export Market: A Dynamic Random-Effect Probit Approach to Panel Data of Japanese Machinery-manufacturing Firms," Discussion papers 15031, Research Institute of Economy, Trade and Industry (RIETI).

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