Offshoring and Trade in East Asia: Statistical Evidence

Author Name WAKASUGI Ryuhei  (Research Counselor, RIETI) /ITO Banri  (Visiting Scholar, RIETI) /TOMIURA Eiichi  (Faculty Fellow, RIETI)
Creation Date/NO. March 2008 08-E-009
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Japanese shares of export and manufacturing value added in the global market have declined significantly, whereas those in China have risen sharply. Recent increase of global offshoring is noteworthy as a factor to cause changes in the structure of international trade and the production-depth. This paper examines how recent increase of offshoring by Japanese firms relates to the changes in the composition of export and manufacturing value added among Japan, China, East Asian countries, the US, and European countries, on the basis of our original survey of Japanese firm’s offshoring and the statistics of export and manufacturing production of these countries. It also discusses how the net cost saving of offshoring due to wage differentials and institutional factors will affect the sustainability of Japanese offshoring.