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International Influences on Japanese Supply Chains

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  • Michal FABINGER
  • SHIBUYA Yoko
  • TANIGUCHI Mina

Abstract

This paper investigates the transmission mechanism of Chinese productivity shocks through industry-level and firm-level networks in the Japanese manufacturing sector using an instrumental variable approach. We find that increased Chinese productivity in a particular industry negatively affects Japanese suppliers of Japanese firms in that industry (upstream propagation) and positively affects their Japanese corporate customers (downstream propagation). This contrasts the recently studied case of the United States, which did not lead to evidence for downstream propagation of such shocks.

Suggested Citation

  • Michal FABINGER & SHIBUYA Yoko & TANIGUCHI Mina, 2017. "International Influences on Japanese Supply Chains," Discussion papers 17022, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:17022
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    File URL: https://www.rieti.go.jp/jp/publications/dp/17e022.pdf
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. 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.
    3. INOUE Hiroyasu & TODO Yasuyuki, 2022. "Propagation of Overseas Economic Shocks through Global Supply Chains: Firm-level evidence," Discussion papers 22062, Research Institute of Economy, Trade and Industry (RIETI).

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