Hostname: page-component-55f67697df-jr75m Total loading time: 0 Render date: 2025-05-10T08:46:44.469Z Has data issue: false hasContentIssue false
  • English
  • Français

Japan's Trade Collapse and Road to Recovery: Vertical Foreign Direct Investment the Key

Published online by Cambridge University Press:  07 May 2025

Tanaka Kiyoyasu
Rights & Permissions [Opens in a new window]

Extract

Core share and HTML view are not available for this content. However, as you have access to this content, a full PDF is available via the ‘Save PDF’ action button.

Will Japan recover more quickly?

Conventional wisdom sees Japan faring among the worst of the industrialized countries in the ongoing economic crisis. Tanaka Kiyoyasu does not dispute this view directly; he concedes that “trade in Japan has declined at a much faster pace than that in the US” even if the overall “impact of the economic crisis on Japan has so far been relatively moderate.” But he maintains this does not tell us the whole picture. He cites studies to demonstrate a strong link between “vertical specialization and international trade” and then goes on to note that “vertical specialization is particularly clear in the case of FDI by Japanese multinationals” as opposed to those in the US.

Type
Research Article
Information
Asia-Pacific Journal , Volume 7 , Issue 20 , May 2009 , e4
Creative Commons
Creative Common License - CCCreative Common License - BYCreative Common License - NCCreative Common License - ND
This is an Open Access article, distributed under the terms of the Creative Commons Attribution-NonCommercial-No Derivatives licence (http://creativecommons.org/licenses/by-nc-nd/4.0/), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is unaltered and is properly cited. The written permission of Cambridge University Press must be obtained for commercial re-use or in order to create a derivative work.
Copyright
Copyright © The Authors 2009

References

Sources

Hummels, David, Ishii, Jun, and Yi, Kei-Mu, (2001) “The nature and growth of vertical specialization in world trade.” Journal of International Economics, 54, 75–96.CrossRefGoogle Scholar
Tanaka, Kiyoyasu, (2009) “Vertical foreign direct investment: evidence from Japanese and US multinational enterprises.” Global COE Hi-Stat discussion paper No. 46.Google Scholar
Yi, Kei-Mu (2009). “The collapse of global trade: the role of vertical specialization,” in Evenett, Baldwin and (eds), The collapse of global trade, murky protectionism, and the crisis: Recommendations for the G20, a VoxEU publication.Google Scholar
WTO (2009). WTO sees 9% global trade decline in 2009 as recession strikes. WTO: 2009 Press release 554, 23 March 2009.Google Scholar