The impact of firms’ international trade on domestic suppliers: The case of Japan

Masahiro Endoh

Journal of the Japanese and International Economies, 2022, vol. 63, issue C

Abstract: This study revisits the propagation of trade effects through inter-firm transactions with upstream domestic firms on five types of business indices. It uses Japanese buyer–seller relationship data constructed by applying more suitable criteria for sampling firms. The results show that upstream manufacturing firms lower the probability of closing by selling their products to downstream manufacturing firms which increase their exports or imports. Interestingly, few unfavorable outcomes of indirect trade shocks were observed. These findings suggest that the economic impact of firms’ international trade on upstream suppliers is more nuanced than just a substitute or complement between international and domestic trade.

Keywords: Buyer–seller network; Closure; Trade (search for similar items in EconPapers)
JEL-codes: F14 F61 L14 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jjieco:v:63:y:2022:i:c:s0889158321000678

DOI: 10.1016/j.jjie.2021.101188

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