IDEAS home Printed from https://ideas.repec.org/p/eti/dpaper/23046.html
   My bibliography  Save this paper

The Impacts of Bilateral Value Chains between Japan and Korea on Value-added Creation of Manufacturing Firms

Author

Listed:
  • HUR Jung
  • KWON Hyeog Ug
  • SONG Hangeul

Abstract

This study investigates the bilateral value chain participation between Japan and Korea and the impacts on their firms’ value-added creation. We found a firm-level evidence that there exist mutual gains of Japanese and Korean firms when both firms belong to an industry that highly participates in a backward bilateral value chain of Korean with Japan, or equivalently say, a forward bilateral value chain of Japan with Korea. This evidence qualitatively remains the same in main manufacturing industries except for automobile and trailer industry. Our result may imply that a trade dispute between Japan and Korea hurts firms in both countries and a mutually beneficial trade relationship should be restored.

Suggested Citation

  • HUR Jung & KWON Hyeog Ug & SONG Hangeul, 2023. "The Impacts of Bilateral Value Chains between Japan and Korea on Value-added Creation of Manufacturing Firms," Discussion papers 23046, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:23046
    as

    Download full text from publisher

    File URL: https://www.rieti.go.jp/jp/publications/dp/23e046.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kasahara, Hiroyuki & Lapham, Beverly, 2013. "Productivity and the decision to import and export: Theory and evidence," Journal of International Economics, Elsevier, vol. 89(2), pages 297-316.
    2. Zhi Wang & Shang-Jin Wei & Xinding Yu & Kunfu Zhu, 2017. "Measures of Participation in Global Value Chains and Global Business Cycles," NBER Working Papers 23222, National Bureau of Economic Research, Inc.
    3. Thomas Farole & Deborah Winkler, 2014. "Making Foreign Direct Investment Work for Sub-Saharan Africa : Local Spillovers and Competitiveness in Global Value Chains," World Bank Publications - Books, The World Bank Group, number 16390.
    4. Hummels, David & Ishii, Jun & Yi, Kei-Mu, 2001. "The nature and growth of vertical specialization in world trade," Journal of International Economics, Elsevier, vol. 54(1), pages 75-96, June.
    5. Baldwin, John R. & Yan, Beiling, 2014. "Global Value Chains and the Productivity of Canadian Manufacturing Firms," Economic Analysis (EA) Research Paper Series 2014090e, Statistics Canada, Analytical Studies Branch.
    Full references (including those not matched with items on IDEAS)

    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. Nenci, Silvia & Fusacchia, Ilaria & Giunta, Anna & Montalbano, Pierluigi & Pietrobelli, Carlo, 2022. "Mapping global value chain participation and positioning in agriculture and food: stylised facts, empirical evidence and critical issues," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 11(2), July.
    2. Karishma Banga, 2022. "Impact of global value chains on total factor productivity: The case of Indian manufacturing," Review of Development Economics, Wiley Blackwell, vol. 26(2), pages 704-735, May.
    3. Aleksandra Parteka & Joanna Wolszczak-Derlacz, 2020. "Wage response to global production links: evidence for workers from 28 European countries (2005–2014)," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 156(4), pages 769-801, November.
    4. Gideon Ndubuisi & Solomon Owusu, 2021. "How important is GVC participation to export upgrading?," The World Economy, Wiley Blackwell, vol. 44(10), pages 2887-2908, October.
    5. Congxin Li & Xu Zhang, 2022. "The Influencing Mechanisms on Global Industrial Value Chains Embedded in Trade Implied Carbon Emissions from a Higher-Order Networks Perspective," Sustainability, MDPI, vol. 14(22), pages 1-38, November.
    6. Sunghun Lim, 2021. "Global Agricultural Value Chains and Structural Transformation," NBER Chapters, in: Risks in Agricultural Supply Chains, pages 29-57, National Bureau of Economic Research, Inc.
    7. Yang, Wei & Wang, Xueke, 2024. "The impact of patent protection on technological innovation: A global value chain division of labor perspective," Technological Forecasting and Social Change, Elsevier, vol. 203(C).
    8. Maria Bas & Vanessa Strauss-Kahn, 2014. "Does importing more inputs raise exports? Firm-level evidence from France," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 150(2), pages 241-275, May.
    9. Pierluigi Montalbano & Silvia Nenci & Carlo Pietrobelli, 2018. "Opening and linking up: firms, GVCs, and productivity in Latin America," Small Business Economics, Springer, vol. 50(4), pages 917-935, April.
    10. Sara Formai & Filippo Vergara Caffarelli, 2016. "Quantifying the productivity effects of global sourcing," Temi di discussione (Economic working papers) 1075, Bank of Italy, Economic Research and International Relations Area.
    11. Pol Antràs & Alonso de Gortari, 2020. "On the Geography of Global Value Chains," Econometrica, Econometric Society, vol. 88(4), pages 1553-1598, July.
    12. Marion Dovis & Chahir Zaki, 2018. "Global Value Chains and Business Environment: Which Factors Do Really Matter?," Working Papers 1270, Economic Research Forum, revised 19 Dec 2018.
    13. Shi, Qiaoling & Zhao, Yuhuan & Qian, Zhiling & Zheng, Lu & Wang, Song, 2022. "Global value chains participation and carbon emissions: Evidence from Belt and Road countries," Applied Energy, Elsevier, vol. 310(C).
    14. Díaz-Mora, Carmen & Córcoles, David & Gandoy, Rosario, 2015. "Exit from exporting: Does being a two-way trader matter?," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 9, pages 1-27.
    15. Chao Wang & Wenyu Zhang & Bing Li, 2023. "Analysis of Country Economic Growth Based on Industries Chain Position," Sustainability, MDPI, vol. 15(21), pages 1-15, November.
    16. Cecilia Jona-Lasinio & Valentina Meliciana, 2019. "Global Value Chains and Productivity Growth: Does Intangible Capital Matter?," International Productivity Monitor, Centre for the Study of Living Standards, vol. 36, pages 53-78, Spring.
    17. Michael Sposi & Kei-Mu Yi & Jing Zhang, 2021. "Trade Integration, Global Value Chains, and Capital Accumulation," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 69(3), pages 505-539, September.
    18. Victor Stolzenburg & Daria Taglioni & Deborah Winkler, 2019. "Economic upgrading through global value chain participation: which policies increase the value-added gains?," Chapters, in: Stefano Ponte & Gary Gereffi & Gale Raj-Reichert (ed.), Handbook on Global Value Chains, chapter 30, pages 483-505, Edward Elgar Publishing.
    19. Minglong Kou & Hui Sun & Long Xin & Keping Men & Xinjie Yan, 2023. "International Industrial Transfer, Green Technological Innovation, and Manufacturing Global Value Chain Status," Sustainability, MDPI, vol. 15(9), pages 1-18, April.
    20. Huan YAN & Xiaojing LI & Shuang MENG, 2023. "Global Value Chain Participation and Sustainable Growth: Evidence from China," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 5-20, June.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:23046. 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.