Papers - Kimura, Fukunari

Globalization and domestic operations

Ando Mitsuyo, Kimura Fukunari

Asian Economic Papers 14 ( 2 ) 1 - 35 2015.06

ISSN  1535-3516

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<p>Does outward foreign direct investment accelerate de-industrialization at home or generate domestic jobs and operations? This paper applies the job creation (JC)/destruction (JD) method to micro data of Japanese manufacturing firms and provides a bird's eye view of the dynamism of globalizing firms in terms of domestic employment, domestic establishments, domestic affiliates, exports, and imports. It examines gross and net changes in domestic operations by multinational enterprises (MNEs) that expand operations abroad (expanding MNEs), compared with non-expanding MNEs and local firms, for the periods of 1998-2002, 2002-06, 2006-08, and 2008-10. It also conducts the Kolmogorov-Smirnov test to investigate whether the changes in domestic operations and trade by expanding MNEs are larger than those by other firm types. Major findings are the followin-g: (1) gross changes in domestic employment and domestic operations are much larger than net changes, showing restructuring dynamism and firm heterogeneity; (2) de-industrialization or the shrinkage of the manufacturing sector is not relevant except for the period 1998-2002, though a slight declining trend in manufacturing activities is observed in recent years; (3) expanding multinational small- and medium-sized enterprises (SMEs) tends to enlarge domestic employment and domestic operations, compared with other types of SMEs; (4) expanding MNEs intensify headquarters activities; and (5) expanding multinational SMEs are likely to expand exports and imports more than other types of SMEs.</p>

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Comments by Fukunari Kimura, on emerging Mega-FTAs

Kimura Fukunari

Asian Economic Papers 14 ( 1 ) 28 - 30 2015.01

ISSN  1535-3516

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Comment on "Measuring and Explaining Innovative Capability

Kimura Fukunari

Asian Economic Policy Review 10 ( 1 ) 176 - 177 2015.01

ISSN  1832-8105

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Epilogue

Rasiah Rajah, Kimura Fukunari, Oum Sothea

Asia Pacific Business Review  2014.12

ISSN  1360-2381

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<p>This conclusion draws theoretical and policy implications for technological capability building from the host-site institutional support and production linkage experiences in China and Southeast Asia. While connecting with production chains have been instrumental in the integration of developing sites in global markets, sites that managed upgrading from low to high value-added activities in the automotive, clothing and semiconductor industries relied strongly on institutional support at host sites. Hence, the global value chain approach is useful in understanding integration in the capitalist world economy. However, only sites with effective industrial policy successfully transformed subsequently to designing and R&amp;D activities.</p>

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Host-site institutions, production networks and technological capabilities

Rasiah Rajah, Kimura Fukunari, Oum Sothea

Asia Pacific Business Review  2014.12

ISSN  1360-2381

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<p>This article examines critically the literature on industrial policy, regional production specialization, global production sharing, global value chains and global production networks to analyse technological capability development in clothing, automotive and semiconductor firms in China and Southeast Asia. Host-site institutional support and regional production linkages were identified as having a strong influence on firm-level technological capabilities. The article then provides the justification and the structure of the automotive, clothing and semiconductor industries, which are characterized by strong international division of labour.</p>

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How Much Do Free Trade Agreements Reduce Impediments to Trade?

Hayakawa Kazunobu, Kimura Fukunari

Open Economies Review 26 ( 4 ) 711 - 729 2014.10

ISSN  0923-7992

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<p>This paper empirically investigates how far free trade agreements (FTAs) successfully lower tariff rates and non-tariff barriers (NTBs) for manufacturing industries by employing the bilateral tariff and NTB data in time series for countries in the world. We find that FTAs under GATT Article XXIV and the Enabling Clause are associated with the 2.0 and 1.5 % lower tariff rates, respectively. In the case of NTBs, on the other hand, their respective effects are 2.1 and 2.4 %. Also, compared with these effects of FTAs, WTO membership does not have large effects on tariff rates but does have them on NTBs. These results provide important implication for the literature on the numerical assessment of FTAs.</p>

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Evolution of machinery production networks

Ando Mitsuyo, Kimura Fukunari

Asian Economic Papers 13 ( 3 ) 121 - 160 2014.10

ISSN  1535-3516

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<p>This paper investigates new developments in the pattern of machinery trade, with a focus on the extent and depth of production networks in North America. We pay particular attention to North America's trade links with East Asia, which have intensified in the last two decades. Investigation of changes in total trade value and the growth of trade on the extensive margin both demonstrates the expanding fragmentation of production in North America as well as the strengthening of connections with Mexico. Our quantitative analysis, which is based on gravity estimation of trade volume and extensive margin trade responses, also provides evidence that U.S. imports of machinery from East Asia are especially strong, and further, that Mexico's role has changed, as it now provides a bridge for trade between East Asia and the United States. These new developments in the pattern of machinery trade reflect reductions in services link costs, the further evolution of production sharing in the U.S.Mexico nexus, and the strengthening competitiveness of production networks based in East Asia.</p>

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Asian fragmentation in the global financial Crisis

Okubo Toshihiro, Kimura Fukunari, Teshima Nozomu

International Review of Economics and Finance 31   114 - 127 2014.05

ISSN  1059-0560

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<p>This paper studies the impact of the Global Financial Crisis of 2008 on Japanese exports, focusing on international production networks in machinery sectors. For our survival analysis, we estimate a Cox proportional hazards model. Consequently, we find that Japanese exports to Asian countries, parts and components trade in particular, were less likely to stop during the crisis. Even if they stopped, such trade is more likely to be revived. Therefore, regardless of the worldwide economic crisis, Japan maintained trade relationships in parts and components in the machinery sectors. © 2014 Elsevier Inc.</p>

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Nonconventional provisions in regional trade agreements

Hayakawa Kazunobu, Kimura Fukunari, Nabeshima Kaoru

Journal of Applied Economics 17 ( 1 ) 113 - 137 2014

ISSN  1514-0326

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<p>The scope of recent regional trade agreements (RTAs) has become much broader than before by the inclusion of nonconventional provisions such as those on competition policy and intellectual property rights protection. This paper empirically examines the extent to which those nonconventional provisions in RTAs enhance international trade between RTA member countries by estimating a gravity equation with detailed information on the contents of RTAs. We find that the provision for competition policy has the largest effect on international trade, followed by the government procurement provision. These two provisions have significant and positive impacts on intensive margin intensive margin (trade values per variety) and extensive margin (number of varieties traded). © 2014 Universidad del CEMA.</p>

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Outward foreign direct investment and innovations from ASEAN and India

Intarakumnerd Patarapong, Ueki Yasushi, Kimura Fukunari

Asian Journal of Technology Innovation 21 ( SUPPL1 ) 1 - 3 2013.10

ISSN  1976-1597

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<p>The special issue focuses on outward foreign direct investment from economically thriving Association of South East Asian Nations (ASEAN) countries and India. The first part of this issue emphasizes on quantitative analysis of the relationship between firms' internal capabilities, innovation and external linkages, including outward foreign investments. The second part concentrates on case studies of ASEAN and Indian firms pursuing outward foreign investments. We compared and contrasted their motives, modes, interactions with local suppliers and customers, and innovation outputs of their investments abroad. © 2013 © 2013 Korean Society for Innovation Management and Economics (KOSIME).</p>

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Production linkage of Asia and Europe via central and eastern Europe

Ando Mitsuyo, Kimura Fukunari

Journal of Economic Integration 28 ( 2 ) 204 - 240 2013.06

ISSN  1225-651X

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<p>This paper investigates the novel development of machinery trade pattern in the Central and Eastern Europe (CEE) and analyzes the extent and depth of production networks in Europe from the perspective of their links with East Asia during the past 15 years, 1995~2010. Our descriptive analysis based on the total value of trade and the extensive margin demonstrates further production fragmentation in Europe, shifting from Western Europe (CEE production sharing to a regional network with more active transactions among CEE countries) to a global link with East Asia via CEE, particularly in the electric machinery sector. Our quantitative analysis verifies the evolution of production networks in Europe, from regional to global. These results partially reflect the reduction in services link costs, the evolution of industrial clustering among CEE countries particularly after the EU enlargement, and the strengthening competence of production networks in East Asia. © 2013-Center for Economic Integration, Sejong Institution, Sejong University, All Rights Reserved.</p>

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How Does Country Risk Matter for Foreign Direct Investment?

Hayakawa Kazunobu, Kimura Fukunari, Lee Hyun Hoon

Developing Economies 51 ( 1 ) 60 - 78 2013.03

ISSN  0012-1533

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<p>Using the overall FDI inflows for 89 countries during the period from 1985 to 2007, we empirically investigate the effects on inward FDI of various components of political and financial risk. We examine the effects of not only the level of these risks but also their changes over time. One of the major findings is that among the political and financial risks, only the political risk is adversely associated with FDI inflows. Specifically, not only the initially low level of political risk, but also a decrease in the level of political risk helps to bring a greater amount of FDI inflows. On the other hand, lower financial risk does not attract FDI inflows, especially to developing countries. Among the various components of political risk, in the sample of developing countries only, it is found that internal conflict, corruption, military in politics, and bureaucracy quality are inversely related to inward FDI flows. © 2013 Institute of Developing Economies.</p>

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Expanding Fragmentation of Production in East Asia and Domestic Operations: Further Evidence from Japanese Manufacturing Firms

KIMURA FUKUNARI

Journal of International Commerce, Economics and Policy 4 ( 1 ) 13500001-1 -- 13500001-43 2013

Research paper (scientific journal), Joint Work

How did the Japanese Exports Respond to Two Crises in the International Production Networks? The Global Financial Crisis and the Great East Japan Earthquake

Ando Mitsuyo, Kimura Fukunari

Asian Economic Journal 26 ( 3 ) 261 - 287 2012.09

ISSN  1351-3958

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<p>This paper analyzes the impact of two massive shocks on Japanese exports, the 2008-2009 Global Financial Crisis and the 2011 Great East Japan Earthquake, focusing on the characteristics of domestic/international production networks in machinery industries. Using monthly data for Japanese bilateral exports at the most disaggregated level, the paper decomposes the fall and recovery of Japanese exports into intensive and extensive margins. It also examines the exit and re-entry of exports using logit estimation and survival analysis. The experience after both shocks confirms the stability and robustness of production networks and the enhancing link with East Asia. However, differences between the two shocks seem to generate differential impacts on corporate behavior. © 2012 The Authors Asian Economic Journal © 2012 East Asian Economic Association and Blackwell Publishing Pty Ltd.</p>

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Globalization and productivity

Hayakawa Kazunobu, Machikita Tomohiro, Kimura Fukunari

Journal of Economic Surveys 26 ( 2 ) 332 - 350 2012.04

ISSN  0950-0804

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<p>Recent empirical studies which utilize plant- or establishment-level data to examine globalization's impact on productivity have discovered many causal mechanisms involved in globalization's impact on firms' productivity. Because these pathways have been broad, there have been few attempts to summarize the several and detailed mechanisms of self-selection and learning at the same time. This paper examines seven pathways so that the clear-cut consequences of the broad picture of globalization become visible. This strategy is useful for detecting missing links within and across the existing studies as well as for finding possible synergy effects among different mechanisms. Insightful policy implications may be derived from the comprehensive comparisons between the seven different pathways of globalization. © 2010 Blackwell Publishing Ltd.</p>

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２１世紀型地域主義の萌芽

KIMURA FUKUNARI

国民経済雑誌 205 ( 1 ) 1-15 2012.01

Research paper (scientific journal), Single Work

地域主義が生み出す二一世紀型国際分業のダイナミズム

KIMURA FUKUNARI

外交専門誌『外交』 (外務省)  9   113-121 2011.09

Research paper (other academic), Single Work

東日本大震災と生産ネットワーク

KIMURA FUKUNARI

世界経済評論 55 ( 5 ) 43-54 2011.09

Research paper (scientific journal), Joint Work

Dynamism of International Division of Labor of the 21st Century Brought about by Regionalism

KIMURA FUKUNARI

Japan Echo Web Print Digest, October-November 2011    3-13 2011

Research paper (other academic), Single Work

Comment on "Financial crisis, 'new' industrial policy, and the bite of multilateral trade rules"

Kimura Fukunari

Asian Economic Policy Review 5 ( 2 ) 247 - 248 2010.12

ISSN  1832-8105

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