IDEAS home Printed from https://ideas.repec.org/p/eti/dpaper/16065.html
   My bibliography  Save this paper

Factoryless Goods Producers in Japan

Author

Listed:
  • Masayuki MORIKAWA

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

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

    Download full text from publisher

    File URL: https://www.rieti.go.jp/jp/publications/dp/16e065.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Tomiura, Eiichi, 2005. "Foreign outsourcing and firm-level characteristics: Evidence from Japanese manufacturers," Journal of the Japanese and International Economies, Elsevier, vol. 19(2), pages 255-271, June.
    2. Chad Syverson, 2011. "What Determines Productivity?," Journal of Economic Literature, American Economic Association, vol. 49(2), pages 326-365, June.
    3. Joseph Francois & Miriam Manchin & Patrick Tomberger, 2015. "Services Linkages and the Value Added Content of Trade," The World Economy, Wiley Blackwell, vol. 38(11), pages 1631-1649, November.
    4. Kyoji Fukao & Hyeog Ug Kwon, 2006. "Why Did Japan'S Tfp Growth Slow Down In The Lost Decade? An Empirical Analysis Based On Firm‐Level Data Of Manufacturing Firms," The Japanese Economic Review, Japanese Economic Association, vol. 57(2), pages 195-228, June.
    5. Robert C. Johnson, 2014. "Five Facts about Value-Added Exports and Implications for Macroeconomics and Trade Research," Journal of Economic Perspectives, American Economic Association, vol. 28(2), pages 119-142, Spring.
    6. Morikawa, Masayuki, 2015. "Are large headquarters unproductive?," Journal of Economic Behavior & Organization, Elsevier, vol. 119(C), pages 422-436.
    7. Morikawa, Masayuki, 2010. "Labor unions and productivity: An empirical analysis using Japanese firm-level data," Labour Economics, Elsevier, vol. 17(6), pages 1030-1037, December.
    8. Bernard, Andrew, 2013. "Factoryless Goods Producers in the US," CEPR Discussion Papers 9644, C.E.P.R. Discussion Papers.
    9. David Byrne & Brian K. Kovak & Ryan Michaels, 2013. "Price and Quality Dispersion in an Offshoring Market: Evidence from Semiconductor Production Services," NBER Working Papers 19637, National Bureau of Economic Research, Inc.
    10. Tomiura, Eiichi, 2007. "Foreign outsourcing, exporting, and FDI: A productivity comparison at the firm level," Journal of International Economics, Elsevier, vol. 72(1), pages 113-127, May.
    11. Eiichi Tomiura & Banri Ito & Ryuhei Wakasugi, 2011. "Offshore Outsourcing Decision And Capital Intensity: Firm‐Level Relationships," Economic Inquiry, Western Economic Association International, vol. 49(2), pages 364-378, April.
    12. Andrew B. Bernard & Teresa C. Fort, 2015. "Factoryless Goods Producing Firms," American Economic Review, American Economic Association, vol. 105(5), pages 518-523, May.
    13. Fariha Kamal & Brent R. Moulton & Jennifer Ribarsky, 2013. "Measuring “Factoryless” Manufacturing: Evidence From U.S. Surveys," Working Papers 13-44, Center for Economic Studies, U.S. Census Bureau.
    14. Marcel P. Timmer & Abdul Azeez Erumban & Bart Los & Robert Stehrer & Gaaitzen J. de Vries, 2014. "Slicing Up Global Value Chains," Journal of Economic Perspectives, American Economic Association, vol. 28(2), pages 99-118, Spring.
    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. Masayuki MORIKAWA, 2019. "Price Competition vs. Quality Competition: Evidence from a Survey," Discussion papers 19075, Research Institute of Economy, Trade and Industry (RIETI).
    2. Toshiyuki MATSUURA, 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).
    3. 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).
    4. 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).
    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. Tadashi ITO & Toshiyuki MATSUURA, 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).
    7. 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).
    8. 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).
    9. 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.
    10. Masayuki MORIKAWA, 2017. "Are Part-time Employees Underpaid or Overpaid? Productivity–wage gaps in Japan," Discussion papers 17077, Research Institute of Economy, Trade and Industry (RIETI).

    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. Masayuki MORIKAWA, 2015. "Service Trade and Productivity: Firm-level evidence from Japan," Discussion papers 15030, Research Institute of Economy, Trade and Industry (RIETI).
    2. Hea-Jung Hyun & Jung Hur, 2014. "Trade Openness and Vertical Structure: Evidence From Korean Firm-Level Data," Open Economies Review, Springer, vol. 25(4), pages 701-720, September.
    3. João Amador & Sónia Cabral, 2014. "Global Value Chains: Surveying Drivers, Measures and Impacts," Working Papers w201403, Banco de Portugal, Economics and Research Department.
    4. Teresa C. Fort, 2017. "Technology and Production Fragmentation: Domestic versus Foreign Sourcing," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 84(2), pages 650-687.
    5. Amador, João & Cabral, Sónia, 2014. "Global value chains: surveying drivers and measures," Working Paper Series 1739, European Central Bank.
    6. Fariha Kamal, 2019. "A Portrait of US Factoryless Goods Producers," NBER Chapters, in: Challenges of Globalization in the Measurement of National Accounts, pages 425-447, National Bureau of Economic Research, Inc.
    7. Marcel P. Timmer & Erik Dietzenbacher & Bart Los & Robert Stehrer & Gaaitzen J. Vries, 2015. "An Illustrated User Guide to the World Input–Output Database: the Case of Global Automotive Production," Review of International Economics, Wiley Blackwell, vol. 23(3), pages 575-605, August.
    8. Angels Pelegrín & José García-Quevedo, 2012. "Which firms are involved in foreign vertical integration?," Working Papers 2012/38, Institut d'Economia de Barcelona (IEB).
    9. João Amador & Sónia Cabral, 2017. "Networks of Value-added Trade," The World Economy, Wiley Blackwell, vol. 40(7), pages 1291-1313, July.
    10. Masayuki MORIKAWA, 2016. "Location and Productivity of Knowledge- and Information-intensive Business Services," Discussion papers 16067, Research Institute of Economy, Trade and Industry (RIETI).
    11. Zhao, Yuhuan & Liu, Ya & Qiao, Xiaoyong & Wang, Song & Zhang, Zhonghua & Zhang, Yongfeng & Li, Hao, 2018. "Tracing value added in gross exports of China: Comparison with the USA, Japan, Korea, and India based on generalized LMDI," China Economic Review, Elsevier, vol. 49(C), pages 24-44.
    12. Morikawa, Masayuki, 2015. "Are large headquarters unproductive?," Journal of Economic Behavior & Organization, Elsevier, vol. 119(C), pages 422-436.
    13. Angels Pelegrín & José García-Quevedo, 2012. "Which firms are involved in foreign vertical integration?," Working Papers 2012/38, Institut d'Economia de Barcelona (IEB).
    14. Masayuki MORIKAWA, 2019. "Price Competition vs. Quality Competition: Evidence from a Survey," Discussion papers 19075, Research Institute of Economy, Trade and Industry (RIETI).
    15. Morikawa, Masayuki, 2021. "Price competition vs. quality competition: Evidence from firm surveys," Journal of Economics and Business, Elsevier, vol. 116(C).
    16. Yoshimichi Murakami & Keijiro Otsuka, 2020. "Governance, Information Spillovers, and Productivity of Local Firms: Toward an Integrated Approach to Foreign Direct Investment and Global Value Chains," The Developing Economies, Institute of Developing Economies, vol. 58(2), pages 134-174, June.
    17. 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.
    18. Morikawa, Masayuki, 2013. "Productivity and survival of family firms in Japan," Journal of Economics and Business, Elsevier, vol. 70(C), pages 111-125.
    19. 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).
    20. 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).

    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

    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:eti:dpaper:16065. 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: TANIMOTO, Toko (email available below). General contact details of provider: https://edirc.repec.org/data/rietijp.html .

    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.