RIETI Report July 11, 2025

The Eighth World KLEMS Conference "Global Supply Chains and Productivity"

Dear Readers,

Welcome to RIETI Report. This bi-weekly newsletter will keep you updated with the recent columns, event information and research results by RIETI fellows and other leading economists in Japan and around the world.

In this edition, we are featuring topics related to global supply chains and productivity, highlighting RIETI’s March symposium held as part of the 8th World KLEMS Conference. The World KLEMS project was launched in 2010 by the late Dale Jorgenson of Harvard University as a platform for exploring a range of productivity-related issues. Amid geopolitical tensions and shifting trade dynamics, leading economists shared their insights into today’s global challenges and their implications for productivity and economic growth.

We hope you will enjoy it. If you have any feedback, we would love to hear from you (news-info@rieti.go.jp).
Editors of RIETI Report (Facebook: @en.RIETI / X: @RIETIenglish / URL: https://www.rieti.go.jp/en/)

Featured Summary

The Eighth World KLEMS Conference "Global Supply Chains and Productivity"

Presenters: Richard BALDWIN (Non-Resident Fellow, RIETI / Professor of International Economics, IMD Lausanne) / INOMATA Satoshi (Chief Senior Researcher, Institute of Developing Economies, JETRO) / URATA Shujiro (Distinguished Senior Fellow (specially appointed) and Chairman Emeritus, RIETI) / FUKAO Kyoji (Chairman, RIETI)
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To read the full text:
https://www.rieti.go.jp/en/events/25032801/summary.html
To watch the videos:
https://www.rieti.go.jp/en/events/25032801/handout.html
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Amid growing geopolitical tensions, supply chain disruptions, and the accelerating pace of automation, countries around the world are rethinking how global economic integration affects productivity and growth. The traditional model of development through manufacturing and global value chain participation faces mounting challenges, while the rise of the service economy and digital trade opens new opportunities and uncertainties.

This symposium, held under the theme “Global Supply Chains and Productivity” as part of the 8th World KLEMS Conference, explores how globalization continues to shape productivity dynamics across advanced and emerging economies. It asks how countries can adapt to technological and geopolitical shocks, whether the service sector can sustain long-term growth, and what policy strategies are needed to manage risks while remaining open and competitive. Through a mix of macroeconomic analysis, trade policy discussion, and data-driven insight, the symposium examines the evolving relationship between global supply chains and national prosperity.

Related Papers

"The Impact of Firms' GVC Participation on Wages"
URATA Shujiro (Distinguished Senior Fellow (specially appointed), RIETI) / BAEK Youngmin (Tokyo Metropolitan University)
https://www.rieti.go.jp/en/publications/summary/25060006.html

"Geopolitical Risk and Corporate Behaviors: Propagation of shocks through global operations"
Huu Nhan DUONG (Monash University) / ISHIKAWA Jota (Faculty Fellow, RIETI) / NISHIDE Katsumasa (Waseda University) / S. Ghon RHEE (University of Hawaiʻi) / SASAHARA Akira (Keio University)
https://www.rieti.go.jp/en/publications/summary/25030011.html

"Reconsidering Supply Chains and Industrial Policy from the Economic Security Perspective"
TODO Yasuyuki (Faculty Fellow, RIETI)
https://www.rieti.go.jp/en/publications/summary/25020004.html

"Economic Security in Japan: Evolution, context and emerging questions"
Shiro ARMSTRONG (Non-Resident Fellow, RIETI)
https://www.rieti.go.jp/en/publications/summary/24120015.html

"The Impact of Trade Disruption with China on the Japanese Economy"
FUJII Daisuke (Fellow (Policy Economist), RIETI)
https://www.rieti.go.jp/en/publications/summary/24100006.html

Related Articles

"US export controls and the restructuring of global value chains: An analysis of Japanese multinationals’ exits from China"
FUKAO Kyoji (Chairman, RIETI) / Ivan DESEATNICOV (Assistant Professor, Faculty of World Economy and International Affairs, HSE University)
https://www.rieti.go.jp/en/columns/v01_0219.html

"Trump 2.0 and Trade: Investment in the U.S. should be based on intellectual cooperation"
TODO Yasuyuki (Faculty Fellow, RIETI)
https://www.rieti.go.jp/en/papers/contribution/todo/09.html

"Key Issues in Economic Analysis in an Increasingly Turbulent Security Environment"
TOMIURA Eiichi (President and CRO, RIETI)
https://www.rieti.go.jp/en/columns/a01_0762.html

Related Event

RIETI BBL Seminar "Are Pro-productivity Policies Fit for Purpose?"
Speaker: Bart VAN ARK (Non-Resident Fellow, RIETI / Professor of Productivity Studies & Managing Director of The Productivity Institute, Alliance Manchester Business School (AMBS) at the University of Manchester
https://www.rieti.go.jp/en/events/bbl/25032601.html

Our Latest Discussion Papers

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"Trade and War, Revisited"
ITO Tadashi (Gakushuin University)
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"Technology Extension Services, Intangible Capital, and SME Productivity before and during the COVID-19 Pandemic"
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"Impact of Corporate Tax Reform on Firm Dynamics: An empirical study of the shift from income-based to pro forma standard taxation in Japan"
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Our Latest Technical Paper

"The Automation Risk Index (ARI) Database for Japan. Methodological Note"
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https://www.rieti.go.jp/en/publications/summary/25060017.html

List of Discussion Papers:
https://www.rieti.go.jp/en/publications/act_dp.html
List of Upcoming and Past Symposiums:
https://www.rieti.go.jp/en/events/symposium.html
List of Upcoming and Past BBL Seminars:
https://www.rieti.go.jp/en/events/bbl/

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