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Adjusting to China competition: Evidence from Japanese plant-product-level data

Flora Bellone (), Cilem Selin Hazir and Toshiyuki Matsuura ()
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Flora Bellone: GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - COMUE UCA - COMUE Université Côte d'Azur (2015-2019) - CNRS - Centre National de la Recherche Scientifique - UCA - Université Côte d'Azur, OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po
Cilem Selin Hazir: ESC Rennes School of Business - ESC [Rennes] - ESC Rennes School of Business

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Abstract: This study examines how the product mixes of Japanese manufacturing plants have been impacted by the rise of China imports over the period 1997-2014, and the extent that plants' local embeddedness mitigate this causal relationship. We find evidence that China import competition induced both product downsizing and product exit within Japanese manufacturing plants. Moreover, we find that those negative e ects differ across plants according to various plant characteristics including the spatial organization of their parent firm. Finally, we show that both product survival and product sales are positively impacted by external agglomeration economies, but these e ects are strong for standalone plants only, and almost non-existent for plants aliated to spatially compact multi-unit firms.

Keywords: Import competition; Product Portfolio; Local Product Relatedness (search for similar items in EconPapers)
Date: 2020-11-01
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Working Paper: Adjusting to China competition: Evidence from Japanese plant‐product‐level data (2021)
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