Geographic Diversification of the Supply Chains of Japanese Firms

Yasuyuki Todo and Hiroyasu Inoue

Asian Economic Policy Review, 2021, vol. 16, issue 2, 304-322

Abstract: Diversifying supply chains has been a policy objective of the Japanese government to construct a robust and resilient economy since the spread of COVID‐19 in the final stages of the Abe Administration. Although geographically expanded supply chains incur a risk of inflows of negative economic shocks from other regions and countries, this risk can be alleviated by more diversification. In addition, diversified supply chains are found to promote the performance of firms. Recently, the domestic supply chains of Japanese firms started to be diversified, but firms still agglomerate in Tokyo substantially. Moreover, the international supply chains of Japanese firms rely considerably on Chinese suppliers and clients. Therefore, more geographic diversification of supply chains of Japanese firms is suggested for the more robust, resilient, and high‐growth economy in the post Abenomics period, including diversifying within Japan, reducing the reliance on China, and strengthening links with developed countries, with the help of the government.

Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
https://doi.org/10.1111/aepr.12337

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:asiapr:v:16:y:2021:i:2:p:304-322

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1832-8105

Access Statistics for this article

Asian Economic Policy Review is currently edited by Takatoshi Ito, Akira Kojima, Colin McKenzie and Shujiro Urata

More articles in Asian Economic Policy Review from Japan Center for Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().