International Fragmentation of Production
Show Less

International Fragmentation of Production

The Impact of Outsourcing on the Japanese Economy

Nobuaki Yamashita

Using state-of-the-art econometric tools, this book examines the implications of international fragmentation of production for the performance of the Japanese manufacturing industry.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 3: Production Fragmentation and Trade Patterns in Japanese Manufacturing

Nobuaki Yamashita


INTRODUCTION Over the past two decades international fragmentation of production has transformed the fundamental nature of global trade. Firms in the US electronics industry pioneered this process of economic globalization. Since the late 1980s Japanese firms have also become increasingly involved in this process. However, despite the increasing importance, only a few studies have explicitly elucidated the modality of fragmentation trade for Japan (Fukao et al., 2003; Kimura and Ando, 2003; Ando and Kimura, 2005; Tomiura, 2005). This gap in the literature has been mainly due to the absence of the readily available measure of fragmentation trade. Against this backdrop, this chapter examines Japan’s emerging trade pattern using data on parts and components as the indicator of fragmentation trade (see Chapter 2 for the data compilation method). In particular, the patterns and trends of fragmentation trade are examined in a wider global perspective with the emphasis on Japan and other industrial countries. The chapter is organized as follows. Section 3.2 depicts the overall patterns and composition of Japanese manufacturing trade from 1962 to 2005.1 Section 3.3 provides an analysis of the patterns of fragmentation trade in Japan’s machinery trade. Section 3.4 examines the two key machinery sectors of electronics and the automotive industry. The final section presents a summary of the major findings. 3.2 AN OVERVIEW OF TRADE PATTERNS In the 1930s the share of Japan’s manufacturing exports was high at around 75–80 per cent (Ohkawa and Rosovsky, 1973). The predominant share of manufactures on the exports side has...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.