Impacts of Increased Chinese Imports on Japan's Labor Market

         
Author Name HAYAKAWA Kazunobu (Institute of Developing Economies) / ITO Tadashi (Gakushuin University) / URATA Shujiro (Faculty Fellow, RIETI)
Creation Date/NO. November 2019 19-E-098
Research Project A Study of the Effects of Trade Policy: A microdata analysis of Japan from the 1990s to 2010s
Download / Links

Abstract

Using Japanese firm/establishment level census data, we investigate the impact of Chinese import penetration on employment in Japan. We found negative impacts of Chinese import penetration on total employment, especially for industries that produce competing products to Chinese imports, and a positive impact of import penetration in the industries from which firms purchase their inputs (upstream import penetration). The negative impacts are mainly driven by firms' exit from the market while positive impacts are enjoyed by surviving firms. We did not find any significant impacts of the penetration in industries to which firms sell their products (downstream penetration).