Following the Lehman Brothers collapse in Fall 2008, the world economy fell into a severe recession along with a large contraction in international trade, known as the Great Trade Collapse. Although the Japanese economy was relatively unharmed from the global financial crisis, it subsequently experienced a large drop in output prompted by a decline in the exports demand from late 2008 to 2009. Our project investigates the propagation mechanism of the negative demand shock and the adjustment process of Japanese firms/industries during this period, utilizing detailed micro data. We also analyze why the Japanese economy's dependence on its exports largely increased during the period of mild recovery preceding the Lehman Brothers collapse, paying particular attention to the structural change of the Japanese industries and the effects of sharp appreciation of energy prices in the 2000s.
October 25, 2011 - September 30, 2014
Major Research Results
RIETI Discussion Papers