Heterogeneous Impact of Import Competition on Firm organization: Evidence from Japanese Firm-level Data

Author Name MATSUURA Toshiyuki (Keio University)
Creation Date/NO. October 2019 19-E-086
Research Project A Study of the Effects of Trade Policy: A microdata analysis of Japan from the 1990s to 2010s
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First Draft: October 2019
Revised: November 2021


This study empirically investigates the effect of import competition on within-firm employment reorganization using Japanese firm-level dataset covering the period of 1997–2014. Moreover, this study examines whether the import competition against low-income countries leads to a shift from a manufacturing activity to non-manufacturing activity, such as headquarters' services, wholesale, retail, or R&D. Furthermore, this study explored the heterogeneity of the impacts of import competition according to firm size. Findings reveal that competition from Chinese imports induces manufacturing firms to increase the share of service workers, particularly workers that engage in wholesale, retail, and other service activities.