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The Services Content of Japanese Trade

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  • Kozo Kiyota

Abstract

This paper investigates the share of direct and indirect services trade in Japanese trade between 1985 and 1995, using data from Japanese input-output tables. The empirical analysis reveals that the share of R&D services in total services trade has been much higher throughout the period than the share of other services. The contribution of school education services gradually increased from 1985 to 1995, while that of financial services declined. These results indicate that Japan increasingly exported technology-intensive products during the period, moving away from goods intensive in financial services to those intensive in educational services. After the bubble economy burst, exports of financial services declined and Japanese banking and insurance companies rapidly withdrew from overseas markets. Financial firms in Japan lack international competitiveness. Although structural reforms have been under way in some services sectors, the analysis in this paper suggests that greater reform is needed, especially in the financial sector.

Suggested Citation

  • Kozo Kiyota, 2001. "The Services Content of Japanese Trade," Asia Pacific Economic Papers 320, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
    • Handle: RePEc:csg:ajrcau:320
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    File URL: https://crawford.anu.edu.au/pdf/pep/pep-320.pdf
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    15. repec:fth:michin:212 is not listed on IDEAS
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    Cited by:

    1. Peter Drysdale & Ben Garvey, 2001. "East Asian Steel Projections for the 1990s Revisited," Asia Pacific Economic Papers 322, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
    2. Kozo Kiyota, 2006. "Reconsidering the Effects of Intranational and nternational R&D Spillovers on Productivity Growth: Firm-level Evidence from Japan," Discussion papers 06001, Research Institute of Economy, Trade and Industry (RIETI).
    3. Kozo Kiyota & Keita Oikawa & Katsuhiro Yoshioka, 2017. "The Global Value Chain and the Competitiveness of Asian Countries," Asian Economic Papers, MIT Press, vol. 16(3), pages 257-281, Fall.
    4. Bayari, Celal, 2004. "Japanese Business in Australia: A Management Survey of Industry Interaction with Locational Factors," MPRA Paper 103896, University Library of Munich, Germany, revised 19 Jan 2004.
    5. Kiyota, Kozo, 2013. "Skills and changing comparative advantage: The case of Japan," Japan and the World Economy, Elsevier, vol. 28(C), pages 33-40.

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    JEL classification:

    • F10 - International Economics - - Trade - - - General

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