Why Has the Border Effect in the Japanese Machinery Sectors Declined?: The Role of Business Networks in East Asian Machinery Trade

Kyoji Fukao and Toshihiro Okubo

Journal of Economic Integration, 2011, vol. 26, 651-671

Abstract: This paper analyzes the impact of firm networks on Japan’s national border effect. We estimate gravity equations using data on Japan’s international and interregional trade in four machinery industries (electrical, general, precision and transportation machinery). The machinery sector is the most important manufacturing sector for exports and outward foreign direct investment (FDI) in Japan. By taking into account international as well as interregional firm networks, we find that ownership relations usually enhance exports from parent firms to establishment. Consequently we can explain 15% (7%, 1% and 0.5%) of the decline in Japan’s border effect from 1980 to 1995 in precision (transportation, general electrical) machinery sector by the increase of international networks.

Keywords: Gravity Model; Border Effect; Firm Networks; Fragmentation (search for similar items in EconPapers)
JEL-codes: F14 F17 F21 L14 (search for similar items in EconPapers)
Date: 2011
References: Add references at CitEc
Citations: View citations in EconPapers (6)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: Why Has the Border Effect in the Japanese Machinery Sectors Declined? The Role of Business Networks in East Asian Machinery Trade (2011)
Working Paper: Why Has the Border Effect in the Japanese Machinery Sectors Declined? The role of business networks in East Asian machinery trade (2011)
Working Paper: Why Has the Border Effect in the Japanese Machinery Sectors Declined? The Role of Business Networks in East Asian-Machinery Trade (2008)
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:ris:integr:0553

Access Statistics for this article

Journal of Economic Integration is currently edited by Seongeun Kim

More articles in Journal of Economic Integration from Center for Economic Integration, Sejong University Contact information at EDIRC.
Bibliographic data for series maintained by Yunhoe Kim ().