Intricate value chains have emerged centered in East Asia. This project investigates the roles that Japan, China, South Korea, Association of Southeast Asian Nations (ASEAN) countries, United States, and other countries play within these networks.
Specific questions that it tackles include: 1) How do exchange rate changes, economic activity in the rest of the world, political considerations, and other factors affect exports from Asian countries and elsewhere; 2) How has the rise of China affected the rest of Asia and the rest of the world; 3) How have countries been able to advance to more complex products; 4) Do exchange rate changes affect exports of more complex products less than exports of other products; 5) How can Japan and East Asia deflect protectionist pressures that are threatening the world trading system; 6) To what extent are East and Southeast Asian country comrades, working together within production networks, and to what extent are they competitors, exporting similar products to third markets; 7) How sophisticated are exports from Japan, South Korea, Taiwan, China, and ASEAN, how close are the goods they produce to the technological frontier, and how they are progressing at moving up the ladder of comparative advantage; 8) What types of policies would promote growth and stability in Japan, Asia, and the rest of the world; 9) How have the rise of regional value chains, the Chinese economy, and other factors affected inflation in the world and the ability of central banks to hit their inflation targets; 10) What policy implications flow from the answers to the questions above.
February 1, 2018 - January 31, 2020
Major Research Results
RIETI Discussion Papers
"Exchange Rates and Intra- and Inter-Firm Trade in Japan" (KATO Atsuyuki)
"East Asian Value Chains, Exchange Rates, and Regional Exchange Rate Arrangements" (Willem THORBECKE)
"Why Japan Lost Its Comparative Advantage in Producing Electronic Parts and Components" (Willem THORBECKE)
RIETI Discussion Papers
"The Weak Rupiah: Catching the tailwinds and avoiding the shoals" (Willem THORBECKE)
"Oil Prices and the U.S. Economy: Evidence from the stock market" (Willem THORBECKE)
"How Would a Slowdown in the People's Republic of China Affect its Trading Partners?" (Willem THORBECKE)
"Nonfarm Employment, Inflationary Expectations, and Monetary Policy after the Global Financial Crisis" (Willem THORBECKE)
"Export Sophistication and Trade Elasticities" (Willem THORBECKE and Nimesh SALIKE)
"The Impact of Oil Prices on East and Southeast Asian Economies: Evidence from financial markets" (Willem THORBECKE)