The effect of an increase in imports from China on local labor markets in Japan

Taniguchi, Mina

doi:10.1016/j.jjie.2018.09.001

Cited by 29 publications

(37 citation statements)

References 27 publications

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“…(2013) confirmed that the share of imports from China in the United States increased from 2001 when China joined the World Trade Organization (WTO). Similarly, Taniguchi (2019) pointed out that, in Japan, imports from China in 2002 exceeded imports from the United States that was the largest importing partner for a long time. Because the WIOD covers the period from 2000, it is desirable to examine the effects of the China shock.…”

Section: Methodology and Datamentioning

confidence: 99%

The China syndrome: A cross‐country evidence

Kiyota

Maruyama

Taniguchi³

2021

World Economy

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While in many advanced countries the increasing import competition from China on employment is a major concern for policymakers and the general public, its impact of Chinese import competition could be different across countries, depending upon the volume and the composition of the products. This paper examines the impact of the China shock on employment in six advanced countries. We find that the import penetration of final goods from China has negative effects on manufacturing employment in these countries, whereas the import penetration of intermediate inputs from and the exports to China could have positive effects. Moreover, such positive effects could offset or even outweigh the negative effects in some countries. These results together suggest that a careful interpretation is needed when evaluating the external validity of the China shock that is obtained in one country.

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Section: Methodology and Datamentioning

confidence: 99%

The China syndrome: A cross‐country evidence

Kiyota

Maruyama

Taniguchi³

2021

World Economy

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“…Similar to their result, in the case of Japan, we found significantly negative impact of the Chinese import penetration on the total number of employees, which is essentially driven by a decrease of workers through the exit of establishments. Taniguchi (2019) analyzed the impacts of import penetration from China on employment in Japan. By exploiting variation across regions instead of products, she found the positive impacts of import penetration from China in Japan.…”

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confidence: 99%

Impacts of increased Chinese imports on Japan’s labor market

Hayakawa

Ito

Urata

2021

Japan and the World Economy

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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).

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“…There is another growing literature on the impact of import competition on domestic labor market, starting from . Subsequent studies focus on the role of service sector (Feentsra and Sasahara, 2018), export exposure (Feenstra et al, 2019), worker heterogeneity (Endoh, 2017), global value chains (Choi and Xu, 2019), and intermediate inputs (Taniguchi, 2019). the approach of Davis and Haltiwanger (1999) to calculate job creation and job destruction.…”

Section: Relation To the Literaturementioning

confidence: 99%

Does It Matter Where You Invest? The Impact of FDI on Domestic Job Creation and Destruction

Kato

Liu

2021

SSRN Journal

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This study uses unique division-level data of Japanese firms to examine how foreign direct investment (FDI) affects domestic employment. Contrary to most previous studies focusing on the effect on net employment growth, we decompose it into gross job creation and gross job destruction. We find that FDI destination plays an important role: FDI to Asia increases job creation, while FDI to Europe or North America decreases it. A frictional search-and-matching model with heterogeneous jobs can explain the differential effects. The model provides additional predictions on job creation and destruction by job type, which are also empirically confirmed.

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The effect of an increase in imports from China on local labor markets in Japan

Cited by 29 publications

References 27 publications

The China syndrome: A cross‐country evidence

The China syndrome: A cross‐country evidence

Impacts of increased Chinese imports on Japan’s labor market

Does It Matter Where You Invest? The Impact of FDI on Domestic Job Creation and Destruction

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