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Factoryless Goods Producers in Japan

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  • MORIKAWA Masayuki

Abstract

In parallel with the deepening of the global value chain, manufacturing firms in advanced countries are servitizing, and, in this respect, factoryless goods producers (FGPs) are attracting attention in international economics. On the other hand, in Japan, policymakers are interested in maintaining domestic manufacturing facilities to keep the ability to develop new products. This study presents descriptive statistics on Japanese FGPs, using micro data from the Basic Survey of Japanese Business Structure and Activities. Although the large majority of Japanese FGPs are classified in information and communications or wholesale industries, some FGPs belong to retail or services industries. This study indicates that FGPs are larger and have higher productivity and wages compared with non-FGPs, are investing intensively in intangible assets, including research and development, and have large headquarters functions. Under the trend of task-based international specialization, the growth of FGPs is expected to contribute to the overall earning potential of the Japanese economy.

Suggested Citation

  • MORIKAWA Masayuki, 2016. "Factoryless Goods Producers in Japan," Discussion papers 16065, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:16065
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    Cited by:

    1. MORIKAWA Masayuki, 2019. "Price Competition vs. Quality Competition: Evidence from a Survey," Discussion papers 19075, Research Institute of Economy, Trade and Industry (RIETI).
    2. Iwasaki, Fusanori & Ueki, Yasushi, 2022. "From buyer-driven fragmented to consumer-driven vertically integrated value chains: a case study of Japanese apparel and accessory SMEs," IDE Discussion Papers 838, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    3. Chun, Hyunbae & Hur, Jung & Son, Nyeong Seon, 2021. "Global value chains and servicification of manufacturing: Evidence from firm-level data," Japan and the World Economy, Elsevier, vol. 58(C).
    4. Diane Coyle & David Nguyen, 2019. "No plant, no problem? Factoryless manufacturing and economic measurement," Economic Statistics Centre of Excellence (ESCoE) Discussion Papers ESCoE DP-2019-15, Economic Statistics Centre of Excellence (ESCoE).
    5. Morikawa, Masayuki, 2020. "Effects of outside directors on firms’ investments and performance: Evidence from a quasi-natural experiment in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 56(C).
    6. Hayakawa, Kazunobu & Mukunoki, Hiroshi, 2022. "How does additive manufacturing change trade?: evidence from trade in sound recordings," IDE Discussion Papers 848, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    7. Roger Strange & John Humphrey, 2019. "What lies between market and hierarchy? Insights from internalization theory and global value chain theory," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(8), pages 1401-1413, October.
    8. MORIKAWA Masayuki, 2017. "Are Part-time Employees Underpaid or Overpaid? Productivity–wage gaps in Japan," Discussion papers 17077, Research Institute of Economy, Trade and Industry (RIETI).
    9. 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).
    10. ITO Tadashi & MATSUURA Toshiyuki, 2022. "China shock on Japanese firms: Firms’ differential reactions to the increase in Chinese imports," Discussion papers 22036, Research Institute of Economy, Trade and Industry (RIETI).

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    More about this item

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • F61 - International Economics - - Economic Impacts of Globalization - - - Microeconomic Impacts
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • L80 - Industrial Organization - - Industry Studies: Services - - - General

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