Details of a Researcher - Kimura, Fukunari

Papers - Kimura, Fukunari

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International production networks are overcoming covid-19 shocks: Evidence from japan’s machinery trade

Ando M., Kimura F., Obashi A.

Asian Economic Papers (Asian Economic Papers) 20 ( 3 ) 40 - 72 2021.11

ISSN 15353516

This paper investigates the impacts of COVID-19 on international production networks in machinery sectors by shedding light on negative supply shocks, negative demand shocks, and positive demand shocks. Specifically, we examined changes in trade in the trade-fall periods amid COVID-19 in 2020 using Japan’s machinery trade at the most disaggregated level and decomposed them into two intensive margins (i.e., the quantity effect and the price effect) and two extensive margins (i.e., the entry effect and the exit effect). Our empirical results show that trade relationships for par ts and components were robust even amid COVID-19 and that international production networks in machinery sectors were almost intact. They also demonstrate that COVID-19 brought positive demand shocks for specific products with special demand due to its nature in addition to negative supply shocks and negative demand shocks, which par tially explains heterogeneous effects not only among sectors but also among products in the same sector. As of October 2020, Japan’s machinery trade seems to have mostly recovered.

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New Developments in International Production Networks: Impact of Digital Technologies*

Obashi A., Kimura F.

Asian Economic Journal (Asian Economic Journal) 35 ( 2 ) 115 - 141 2021.06

ISSN 13513958

We conducted a standard gravity exercise using worldwide disaggregated trade data to shed light on the influence of digital technologies on network trade. We found that growing investment in industrial robots in relatively lagging economies, together with imported digitally deliverable services, is enhancing bilateral network trade flows in East Asia, but not necessarily in other parts of the world. This suggests that exploring complementarities between machines and human resources in production blocks supported by better service-link connectivity may allow newly developed economies to retain and expand the international division of labor.

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Asean’s energy transition towards cleaner energy system: Energy modelling scenarios and policy implications

Phoumin H., Kimura F., Arima J.

Sustainability (Switzerland) (Sustainability (Switzerland)) 13 ( 5 ) 1 - 29 2021.03

The Association of Southeast Asian Nations (ASEAN) faces tremendous challenges regarding the future energy landscape and how the energy transition will embrace a new architecture— including sound policies and technologies to ensure energy access together with affordability, energy security, and energy sustainability. Given the high share of fossil fuels in ASEAN’s current energy mix (oil, coal, and natural gas comprise almost 80%), the clean use of fossil fuels through the deployment of clean technologies is indispensable for decarbonizing ASEAN’s emissions. The future energy landscape of ASEAN will rely on today’s actions, policies, and investments to change the fossil fuel-based energy system towards a cleaner energy system, but any decisions and energy policy measures to be rolled out during the energy transition need to be weighed against potentially higher energy costs, affordability issues, and energy security risks. This paper employs energy modelling scenarios to seek plausible policy options for ASEAN to achieve more emissions reductions as well as energy savings, and to assess the extent to which the composition of the energy mix will be changed under various energy policy scenarios. The results imply policy recommendations for accelerating the share of renewables, adopting clean technologies and the clean use of fossil fuels, and investing in climate-resilient energy quality infrastructure.

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“RCEP from the middle powers’ Perspective”

Kimura F.

China Economic Journal (China Economic Journal) 14 ( 2 ) 162 - 170 2021

ISSN 17538963

East Asian countries signed the Regional Comprehensive Economic Partnership Agreement (RCEP) in November 2020. This paper demonstrates the importance of ASEAN centrality in East Asian economic integration and makes a preliminary assessment of the agreement in terms of the four expected roles: liberalization, rulemaking, reducing policy risks, and forming a pro-trade middle power coalition. The comparison with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) reveals the strengths and weaknesses of RCEP. The paper emphasizes the importance of dynamic aspects of mega-FTAs after being in effect and claims that RCEP must be further developed as an evolving agreement.

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The Impact of COVID-19 and the USChina Confrontation on East Asian Production Networks

Kimura F.

Seoul Journal of Economics (Seoul Journal of Economics) 34 ( 1 ) 27 - 41 2021

ISSN 12250279

International production networks (IPNs) in East Asia are facing two challenges, i.e., COVID-19 and the US-China confrontation. COVID-19 has generated three kinds of shocks on IPNs: negative supply shocks, positive demand shocks, and negative demand shocks. IPNs have adequately managed these shocks thus far and have been strengthening the relative position of Factory Asia in the world. Nevertheless, the US-China confrontation and its consequences of weakening the rule-based trading regime have enhanced uncertainties in the operations of IPNs. The decoupling pressure may come from either the US or China for middle powers in-between, even with the US Biden Administration. This study posits that the construction of a mega-free trade agreement (FTA) network may partially reduce policy risks and help form a pro-trade middle-power coalition.

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Potential renewable hydrogen from curtailed electricity to decarbonize asean’s emissions: Policy implications

Phoumin H., Kimura F., Arima J.

Sustainability (Switzerland) (Sustainability (Switzerland)) 12 ( 24 ) 1 - 15 2020.12

The power generation mix of the Association of Southeast Asian Nations (ASEAN) is dominated by fossil fuels, which accounted for almost 80% in 2017 and are expected to account for 82% in 2050 if the region does not transition to cleaner energy systems. Solar and wind power are the most abundant energy resources but contribute negligibly to the power mix. Investors in solar or wind farms face high risks from electricity curtailment if surplus electricity is not used. Employing the policy scenario analysis of the energy outlook modelling results, this paper examines the potential scalability of renewable hydrogen production from curtailed electricity in scenarios of high share of variable renewable energy in the power generation mix. The study found that ASEAN has high potential in developing renewable hydrogen production from curtailed electricity. The study further found that the falling cost of renewable hydrogen production could be a game changer to upscaling the large-scale hydrogen production in ASEAN through policy support. The results implied a future role of renewable hydrogen in energy transition to decarbonize ASEAN’s emissions.

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Household-level analysis of the impacts of electricity consumption on welfare and the environment in Cambodia: Empirical evidence and policy implications

Han P., Kimura F., Sandu S.

Economic Modelling (Economic Modelling) 89 476 - 483 2020.07

ISSN 02649993

Cambodia's biomass consumption is the most dominant energy source at residential sector, and its use is mainly for cooking and heating which could affect health due to indoor air pollution. The biomass is mainly sourced from wood cutting and forest-encroachment that could impact the environment due to reduction of forest at considerable scale. By using the data 2015 of Cambodia Socio-Economic Survey, the study investigates the impacts of electricity consumption on household welfare, such as earnings and the school performance of children in the households, and further to investigate its impacts on the environment. The study found that household's access to electricity with ability to spend on electricity consumption contributes to the positive household welfare effects and environment via a reduction of biomass consumption, and the more household spends on biomass, the more they are prone to sickness of lung problem. The study also confirmed the important role of human capital formation for the positive impact on the welfare and the environment. These findings lead to policy implications that would improve affordable access to electricity to ensure that all households can use electricity for their basic needs and productivity, and also to reduce the negative effects on environment.

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World Trading System under Stress: Scenarios for the Future

Akman M.S., Armstrong S., Dadush U., Gonzalez A., Kimura F., Nakagawa J., Rashish P., Tamura A., Primo Braga C.A.

Global Policy (Global Policy) 11 ( 3 ) 360 - 366 2020.05

ISSN 17585880

The world trading system has been remarkably successful in many respects but is now under great strain. The causes are deep-seated and require a strategic response. The future of the system depends critically on reinvigorating the WTO and policy change in the largest trading nations. Important measures are required to sustain the multilateral trading system, and urgent action is needed to avoid a scenario where the system fragments. The worst scenarios will disrupt global trade and see a world which splinters into large trading blocs (most likely centered on China, the European Union and the United States) and where trade relations are based to a large extent on relative power instead of rules. In such a world the smallest players – especially those whose trade is least covered by bilateral or regional agreements – will be at the greatest disadvantage. All countries will incur enormous costs only to try and reinvent a system that is already in place today under the WTO.

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Pandemic (COVID-19) Policy, Regional Cooperation and the Emerging Global Production Network†

Kimura F., Thangavelu S.M., Narjoko D., Findlay C.

Asian Economic Journal (Asian Economic Journal) 34 ( 1 ) 3 - 27 2020.03

ISSN 13513958

In this paper, we explore the possible policy responses to the COVID-19 pandemic shock as well as the related economic (financial crisis) shocks on trade and global value chains (GVC) in East Asia. We find that regional policy coordination is critical to mitigate and isolate the pandemic shock. It is important to identify the pandemic events early to flatten the pandemic curve at the national and regional level. This supports a recent study by the World Bank (2020), which highlights the importance of early mitigation policies during the pandemic shock. The cost of the pandemic and economic shocks will increase significantly when several countries in the region experience the pandemic shock concurrently. In this case, flattening the regional pandemic curve becomes important. The results also indicate the need for greater coordination in East Asia to mitigate the pending economic shock in terms of unemployment, corporate bankruptcy and financial market fragility. The paper also highlights that the stability of the GVC network is critical during the pandemic in terms of hedging the risk of disruptions to the procurement of critical medical and health products as well as maintaining service linkages to manufacturing, such as the logistics sector. Regional policy coordination and the stability of GVC will be valuable in the post-pandemic recovery of the region.

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Defending the rule-based trading regime: The multilateral trading system at risk and required responses

Kimura F.

Asian Economic Papers (Asian Economic Papers) 18 ( 3 ) 78 - 87 2019.12

ISSN 15353516

The current trade turmoil is not limited to negative economic effects stemming from the series of recent trade measures erected by the United States as par t of the escalating U.S.–China trade war. The more serious issue that will unfold in the middle to long term is the potential collapse of the rule-based trading regime. The weakening of the multilateral trading system centered by the World Trade Organization (WTO) seems to continue. East Asia has been one of the largest beneficiaries of the rule-based trading regime in its course of extending and deepening international production networks and must now take proactive moves to defend and preserve this stable economic environment. Two crucial tasks in the preservation of the WTO are effor ts to maintain the functionality of the dispute settlement mechanism and the revival of the WTO as a forum for future trade negotiations. At the same time, East Asia must develop a network of mega–free trade agreements (FTAs) to par tially supplement a possible loss of the multilateral framework.

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The impacts of energy insecurity on household welfare in Cambodia: Empirical evidence and policy implications

Phoumin H., Kimura F.

Economic Modelling (Economic Modelling) 82 35 - 41 2019.11

ISSN 02649993

This study investigates the impacts of energy insecurity on household welfare in Cambodia. The notion of energy insecurity is not well understood in the literature as well as in local contexts. This study defines household energy insecurity as the status quo derived from the interplay of inadequate and insufficient energy consumption that prevents households from meeting basic energy needs. The notion of energy insecurity can only be well understood by investigation in the local context as it varies from place to place. Households facing insufficient energy consumption may forgo many other opportunities. Once energy security has been defined in the Cambodian context, the study employs multiple regression models using the Cambodia Socio-Economic Survey Data (2015) to investigate the impacts of household energy insecurity. The study confirmed that energy insecurity has enormous negative impact on welfare of the households, with a further negative impact on the human capital formation of the children. The findings will lead to policy implications to improve household energy security, and thus impact economic, social, and environmental development.

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Cambodia's energy poverty and its effects on social wellbeing: Empirical evidence and policy implications

Phoumin H., Kimura F.

Energy Policy (Energy Policy) 132 283 - 289 2019.09

ISSN 03014215

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Quantifying the EU-Japan Economic Partnership Agreement

Felbermayr G., Kimura F., Okubo T., Steininger M.

Journal of the Japanese and International Economies (Journal of the Japanese and International Economies) 51 110 - 128 2019.03

ISSN 08891583

This paper provides a quantitative analysis of the new EU-Japan Economic Partnership Agreement (EPA), the biggest bilateral deal that both the EU and Japan have concluded so far. It employs a generalized variant of the Eaton–Kortum (2002) model, featuring multiple sectors, input-output linkages, services trade, and non-tariff barriers (NTBs). It uses the results of an econometric ex post analysis of a related existing FTA, the one between the EU and Korea, to approximate the expected reductions in the costs of NTBs. This approach yields long-run welfare effects for Japan of about 18 bn USD per year (0.31% of GDP) and of about 15 bn USD (0.10%) for the EU. On average, the agreement does not appear to harm third countries. 14% of the welfare gains inside the EPA stem from tariffs, the remaining 86% from NTB reform, and the services sector account for more than half. In the EU, value added in the agri-food sector goes up most, while in Japan the manufacturing and services sectors gain.

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Introduction: Services supply chain-the impact on trade and development in East Asian countries

Kimura F., Mugan Thangavelu S., Findlay C., Chen L.

Journal of Southeast Asian Economies (Journal of Southeast Asian Economies) 36 ( 2 ) 141 - 152 2019

ISSN 23395095

A well-developed services supply chain is crucial for regional integration. In the context of East Asia and ASEAN, it will allow countries at varying development stages to effectively participate in regional as well as global supply chains. This paper examines services from a supply chain perspective and discusses policy implications for liberalization of the sector in East Asian economies. In particular, the study focuses on global value chain (GVC) activities for services that are independent of linkages to the manufacturing sector.

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Measuring the usage of preferential tariffs in the world

Hayakawa K., Kimura F., Laksanapanyakul N.

Review of World Economics (Review of World Economics) 154 ( 4 ) 705 - 723 2018.11

ISSN 16102878

The preference utilization ratio, i.e., the share of preferential imports out of total imports, has been a popular indicator for measuring the usage of preferential tariffs vis-à-vis tariffs on a most-favored-nation basis. A crucial shortcoming of this measure is the data requirements, particularly for data on imports classified by tariff schemes, which are not available in most countries. This study proposes another measure for preference utilization, termed the “tariff exemption ratio.” This measure is a good proxy for the value of offered preferences by each importing country to the rest of the world. Importantly, it can be computed by employing only publicly available data, such as those provided by the World Development Indicators, for its computations. We can thus calculate this measure for many countries for an international comparison. Our finding is that tariff exemption ratios differ widely across countries.

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Are Production Networks Passé in East Asia? Not Yet

Obashi A., Kimura F.

Asian Economic Papers (Asian Economic Papers) 17 ( 3 ) 87 - 107 2018.10

ISSN 15353516

Many people have a vague notion that the room for expanding international production networks is almost exhausted and that therefore international trade has slowed down since the recovery from the great trade collapse. This paper presents evidence against such a belief in the East Asian context by classifying finely disaggregated trade data based on the stages of the production process. The trade slowdown was attributed mainly to sluggishness of trade in primary goods and processed raw materials. In contrast, East Asian trade in manufactured parts and components and the assembled end-products within production networks continued to expand steadily.

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Value Chain Connectivity in Indonesia: The Evolution of Unbundlings

Kimura F., Chen L.

Bulletin of Indonesian Economic Studies (Bulletin of Indonesian Economic Studies) 54 ( 2 ) 165 - 192 2018.05

ISSN 00074918

This paper applies the conceptual framework of ‘unbundling’, proposed by Baldwin (2016), to assess the value chain connectivity in Indonesia. Indonesia is a geographically large country, and three different levels of unbundling co-exist. The first unbundling aligns with the industry-wise international division of labour in plantation agriculture, mining, and labour-intensive industries; the second aligns with where the task-wise international division of labour dominates mainly in machinery industries; and the third aligns with where face-to-face costs are reduced by the digital economy. We argue that the further upgrading of unbundling and the more effective use of advanced piecemeal technologies among different levels of unbundling will enable Indonesia to achieve rapid and equitable economic development. Overcoming distance is key for effectively using the mechanics of unbundling. We propose that three key elements are be promoted: enhancement of connectivity, development of the service sector, and improvement of the policy environment.

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Unbundling regimes and development strategies in ASEAN: Old issues and new challenges

Kimura F.

Journal of Southeast Asian Economies (Journal of Southeast Asian Economies) 35 ( 1 ) 13 - 21 2018.04

ISSN 23395095

This paper extends the conceptual framework of "unbundling" proposed by Baldwin (2016), and tries to provide a starting point for reorganizing development strategies of ASEAN member states (AMS). While AMS have largely been successful in utilizing the mechanics of the second unbundling with a reduction in communication costs, there still exists a lot of room for exploiting its benefits. In addition, a new wave of the third unbundling, which comes with a reduction in face-to-face costs, has already arrived at ASEAN, and AMS must start incorporating it into their development strategies.

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Technology transfer in ASEAN countries

Kimura Fukunari, Machikita Tomohiro, Ueki Yasushi

Economic Change and Restructuring 2015.06

Joint Work, ISSN 1573-9414

Technology transfers are important channels for firms in developing countries to get access to new technology and initiate innovation. This article examines the geographical pattern of technology transfers in the form of buyer-provided training in domestic and international production networks. Our unique buyer-supplier network data in four countries in Southeast Asia allow us to directly observe the buyer-supplier relationship as well as the existence of inter-firm provision of training for product/process innovation in order to investigate the geographical structure of knowledge acquisition, dissemination, and aggregation among local and non-local firms. The empirical analysis finds the following: (1) the probability of having training provided by the main buyer presents a U-shaped quadratic pattern with respect to the geographical distance between the respondent firms and the main buyers. The geographical proximity to the main buyer seems to be particularly important for local firms. (2) The training provision is likely for both local and non-local firms when the main buyer is a multinational located in the same country. (3) The probability of having training from the main buyer is high when the main buyer conducts R&D. (4) Both local and non-local firms that have training provided by their main buyers are likely to provide training to their main suppliers. (5) In the case of non-local firms, product innovation with production partners is more likely when they have upstream/downstream training. However, such links seem to be weaker in the case of local firms.

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Comments by Fukunari Kimura, on the impact of globalization on establishment-level employment dynamics in Japan

Kimura Fukunari

Asian Economic Papers 14 ( 2 ) 68 - 70 2015.06

ISSN 1535-3516

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Globalization and domestic operations

Ando Mitsuyo, Kimura Fukunari

Asian Economic Papers 14 ( 2 ) 1 - 35 2015.06

ISSN 1535-3516

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.

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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

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&D activities.

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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

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.

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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

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.

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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

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.

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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

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.

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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

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.

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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

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).

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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

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.

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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

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.

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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

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.

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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

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.

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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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Comments

Kimura Fukunari

Asian Economic Papers 9 ( 2 ) 147 - 148 2010.06

ISSN 1535-3516

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The effect of exchange rate volatility on international trade in East Asia

Hayakawa Kazunobu, Kimura Fukunari

Journal of the Japanese and International Economies 23 ( 4 ) 395 - 406 2009.12

ISSN 0889-1583

In this paper, we empirically investigate the relationship between exchange rate volatility and international trade, focusing on East Asia. Our findings are summarized as follows: first, intra-East Asian trade is discouraged by exchange rate volatility more seriously than trade in other regions. Second, one important source of the discouragement is that intermediate goods trade in international production networks, which is quite sensitive to exchange rate volatility compared with other types of trade, occupies a significant fraction of East Asian trade. Third, the negative effect of the volatility is greater than that of tariffs and smaller than that of distance-related costs in East Asia. © 2009 Elsevier Inc. All rights reserved.

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Does International Fragmentation Occur in Sectors Other Than Machinery?

KIMURA FUKUNARI

Asian Economic Journal 22 ( 4 ) 343-358 2008.12

Research paper (scientific journal), Joint Work

WTO体制の今後：地域主義との新たな関係構築は可能か

KIMURA FUKUNARI

世界経済評論 ( 11 ) 6-13 2008.11

Research paper (scientific journal), Single Work

How Does Economic Freedom Affect International Trade in Services?

KIMURA FUKUNARI

Journal of Korea Trade 12 ( 3 ) 1-28 2008.11

Research paper (scientific journal), Joint Work

Demystify Protectionism: the WTO Trade Policy Review of Japan

KIMURA FUKUNARI

The World Economy 31 ( 11 ) 1383-1392 2008.11

Research paper (scientific journal), Single Work

Are Korean Firms Doing Well? Evidence from Shandong Province in China

KIMURA FUKUNARI

The Journal of the Korean Economy 9 ( 1 ) 1-26 2008.03

Research paper (scientific journal), Joint Work

ASEAN主導の東アジア経済統合と国際通商政策の新たな潮流

KIMURA FUKUNARI

世界経済評論 52 ( 1 ) 35-41 2008.01

Research paper (scientific journal), Single Work

Does international fragmentation occur in sectors other than machinery?

Kimura Fukunari, Hayakawa Kazunobu, Ji Zheng

Asian Economic Journal 22 ( 4 ) 343 - 358 2008

ISSN 1351-3958

It is well established in the published literature that international fragmentation has dramatically developed in East Asia since the 1990s, particularly in machinery industries, including general machinery, electric machinery, transport equipment and precision machinery. However, how far has international fragmentation developed in sectors other than the machinery sector, such as textiles or chemicals? To answer this question, we empirically investigate whether features of international fragmentation appear in other sectors by examining intraregional trade in East Asia. The results indicate that, although some features of international fragmentation can be observed in some other sectors, particularly in the chemical sector, they are most distinctive in the general/electric machinery sector. © 2008 The Authors Journal compilation © 2008 East Asian Economic Association and Blackwell Publishing Ltd.

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Japanese FTA/EPA Strategies and Agricultural Protection

KIMURA FUKUNARI

Keio Business Review 44 ( 1 ) 1-25 2008

Research paper (bulletin of university, research institution), Joint Work

Demystify protectionism

Kimura Fukunari

World Economy 31 ( 11 ) 1383 - 1392 2008

ISSN 0378-5920

This paper reviews the eighth Trade Policy Review (TPR) for Japan. It begins with an appreciation of its fair and well-balanced work in updating knowledge on the progress of policy reform in Japan. The TPR confirms the recovery of the Japanese economy with some notable improvements in its policy environment, the example of which is competition policy. On the other hand, there still remain notable trade impediments, particularly in agriculture. Some agricultural products are still heavily protected by complicated border measures. This paper provides some supplementary information, namely that the domestic production of most of the heavily protected products, with the exception of rice, are highly concentrated geographically, suggesting the politico-economic background. The rise of regionalism is mentioned as another topical issue in Japan though the characteristics and significance of free trade agreement networking by Japan are not fully discussed by the TPR. The TPR praises Japan's effort in providing the generalised system of preferences (GSP), but this paper offers a somewhat sceptical view of the role of GSP as a useful tool for developing countries. Overall, the TPR for Japan is assessed as a good starting point for dealing with the remaining issues on international commercial policies in Japan. © 2008 The Authors Journal compilation © 2008 Blackwell Publishing Ltd.

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The Australia-Japan FTA and New-Regionalism: A Japanese Perspective

KIMURA FUKUNARI

APEC Economies Newsletter 11 ( 12 ) 1-2 2007.12

Research paper (scientific journal), Single Work

Can Offshoring Create Domestic Jobs? Evidence from Japanese Data

KIMURA FUKUNARI

CEPR Policy Insight ( 16 ) 2007.12

Research paper (scientific journal), Joint Work

日豪経済連携協定の戦略的需要性と日本経済への影響

KIMURA FUKUNARI

貿易と関税 4-16 2007.10

Research paper (scientific journal), Joint Work

Fragmentation and parts and components trade

Kimura Fukunari, Takahashi Yuya, Hayakawa Kazunobu

North American Journal of Economics and Finance 18 ( 1 ) 23 - 40 2007.02

ISSN 1062-9408

This paper argues that fragmentation theory is well suited for explaining the mechanics of international production/distribution networks in East Asia, in contrast with the traditional horizontal product differentiation model fitted for intra-industry trade in core Europe. Using finely disaggregated international trade data, patterns of international trade in East Asia and Europe, particularly trade in machinery parts and components, are carefully examined, and the gravity equation approach is applied to check the validity of the theoretical framework. © 2006 Elsevier Inc. All rights reserved.

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Foreign-owned versus domestically-owned firms

Kimura Fukunari, Kiyota Kozo

Review of Development Economics 11 ( 1 ) 31 - 48 2007.02

ISSN 1363-6669

This paper utilizes micro-panel data for firms located in Japan and examines differences in corporate performance between foreign-owned and domestically-owned firms in the 1990s. We find that foreign-owned firms not only reflect superior static characteristics, but also achieve faster growth. Moreover, foreign investors appear to invest in firms that may not be immediately profitable, but those that are potentially the most profitable in the future. There is also no evidence that foreign investor is "foot-loose." These imply that foreign investors bring useful firm-specific assets into the Japanese market, which may work as an effective catalyst for necessary structural reform. © 2006 The Authors; Journal compilation © 2007 Blackwell Publishing Ltd.

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東アジアにおけるFTA網形成の現況と日本

KIMURA FUKUNARI

問題と研究 36 ( 6 ) 25-44 2007

Research paper (scientific journal), Single Work

Exports, FDI, and productivity

Kimura Fukunari, Kiyota Kozo

Review of World Economics 142 ( 4 ) 695 - 719 2006.12

ISSN 1610-2878

This paper examines the relationship between exports, foreign direct investment, and firm productivity. Using longitudinal panel data on Japanese firms, it is found that the most productive firms engage in exports and foreign direct investment, medium productive firms engage in either exports or foreign direct investment, and the least productive firms focus only on the domestic market. Moreover, exports and foreign direct investment appear to improve firm productivity once the productivity convergence effect is controlled for. Firms that retain a presence in foreign markets, either by exports or foreign direct investment, show the highest productivity growth, which contributes to improvements in national productivity. © The Kiel Institute 2006.

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International Production and Distribution Networks in East Asia: Eighteen Facts, Mechanics, and Policy Implications

KIMURA FUKUNARI

Asian Economic Policy Review 1 ( 2 ) 326-344 2006.12

Research paper (scientific journal), Single Work

東アジア・環太平洋地域の経済統合の現状と日本・韓国の国際通商政策

KIMURA FUKUNARI

三田学会雑誌 99 ( 2 ) 5-29 2006.07

Research paper (bulletin of university, research institution), Joint Work

小特集：日本と東アジアにおける貿易・投資・環境　現代的課題

KIMURA FUKUNARI

三田学会雑誌 99 ( 2 ) 1-4 2006.07

Research paper (bulletin of university, research institution), Single Work

北東アジアにおける日本企業と日本政府の戦略

KIMURA FUKUNARI

『北東アジアFTA推進の在り方』、日本機械輸出組合 141-159 2006.06

Research paper (scientific journal), Single Work

The gravity equation in international trade in services

Kimura Fukunari, Lee Hyun Hoon

Review of World Economics 142 ( 1 ) 92 - 121 2006.04

ISSN 1610-2878

The main purpose of this paper is to assess the impact of various factors on bilateral services trade, relative to that on bilateral goods trade. To accomplish this purpose, using the standard gravity model, we ran regressions on bilateral services trade and goods trade between 10 OECD member countries and other economies (including OECD member and nonmember countries) for the years 1999 and 2000. One main and interesting result is that services trade is better predicted by gravity equations than goods trade. Another interesting result is that there is a complementary relationship between goods exports and services imports. © 2006 The Kiel Institute.

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国際的生産・流通ネットワークと新国際通商戦略

KIMURA FUKUNARI

フィナンシャル・レビュー　第2号（通巻第81号） ( 2 (通巻第81） ) 82-102 2006.04

Research paper (scientific journal), Joint Work

企業活動のグローバル化と企業の生存確率：企業活動基本調査のパネル・データによる検証

KIMURA FUKUNARI

経済統計研究 33 ( IV ) 20-38 2006.03

Research paper (scientific journal), Joint Work

Pursuing the Best Form of the Plurilateral Regional Trade Arrangements in East Asia

KIMURA FUKUNARI

The Journal of the Korean Economy 7 ( 2 ) 277-301 2006

Research paper (scientific journal), Joint Work

東アジアの生産・流通ネットワーク：そのメカニズムと今後の課題

KIMURA FUKUNARI

『国際問題』、２００６年７・８月[合併号] ( 533 ) 4-12 2006

Research paper (scientific journal), Single Work

International production/distribution networks and Indonesia

Kimura Fukunari

Developing Economies 43 ( 1 ) 17 - 38 2005.03

ISSN 0012-1533

This study examines the industrialization performance of Indonesia through a comparative evaluation with other East Asian economies. While neighboring countries actively formulated international production/distribution networks, Indonesia fell behind in utilizing the benefits of globalizing corporate activities. International production/distribution networks are supported by new economic thought such as fragmentation, agglomeration, and theories about corporate firm; and a policy package of development strategies should be designed to utilize such opportunities. The design of Indonesia's development strategies and "institutions," however, does not conform to the globalizing world because the presence of network-forming foreign companies is not large enough to make them influential "actors." This author argues that the traditional comparative advantage argument for Indonesia's economic development is possibly misleading. Rather, Indonesia must learn the experience of its neighboring countries and introduce foreign companies as new actors to break the old "structure".

Two-dimensional fragmentation in East Asia

Kimura Fukunari, Ando Mitsuyo

International Review of Economics and Finance 14 ( 3 SPEC. ISS. ) 317 - 348 2005

ISSN 1059-0560

This paper proposes the concept of two-dimensional fragmentation and empirically analyzes the international production/distribution networks in East Asia. Two dimensions of fragmentation are in terms of geographical distance and controllability of a firm for fragmented production processes. The increase in service link cost comes from physical separation of production processes and uncontrollability while the reduction of production costs comes along location advantages and the counterparts' ownership advantages. Our empirical investigation using disaggregated international trade data and micro-data of Japanese corporate firms reveals the development of production networks in East Asia with active back-and-forth transactions of parts and components. It also emphasizes their development with sophisticated combination of intra-firm and arm's length transactions along flexible de-internalization decision-making for outsourcing and with more developed industrial clusters. The paper suggests that policy environment in East Asia has an important role in reducing the service link cost due to uncontrollability as well as physical distance. © 2005 Elsevier Inc. All rights reserved.

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The economic analysis of international production/distribution networks in East Asia and Latin America

Kimura Fukunari, Ando Mitsuyo

Business and Politics 7 ( 1 ) 2005

ISSN 1469-3569

This paper applies an economic approach to empirically investigate differences in inward foreign direct investment (FDI) patterns between East Asia and Latin America and discusses the implication of regional trade arrangements. International production/distribution networks in East Asia effectively utilize the new economic logic of fragmentation, agglomeration, and optimal internalization and seem to greatly contribute to economic development. The paper examines statistical data for international trade as well as the activities of Japanese and U.S. multinational enterprises (MNEs) and argues that international production/distribution networks, particularly in machinery industries, are extensively developed in East Asia while remaining immature in Latin America. The impact of regional trade arrangements is substantially different depending on whether international production/distribution networks have already been developed or not. Our findings suggest that the impact of FTAA on FDI in Latin America by East Asian MNEs could be either positive or negative, depending on the content of FTAA and accompanying policies. If differentials between intra-regional tariffs and MFN-based tariffs are kept large, import-substituting FDI from East Asia may stagnate or even decrease. With a proper policy package to nurture international production/distribution networks, on the other hand, FDI from East Asia could be accelerated and contributed to deeper integration of Latin America.

東アジアの国際的生産・流通ネットワーク：日本企業のマイクロ・データを用いた統計的把握の試み

KIMURA FUKUNARI

経済統計研究 32 ( III ) 1-18 2004.12

Research paper (scientific journal), Joint Work

知財保護に関する国際的政策規律：発展途上国への含意

KIMURA FUKUNARI

アジア経済 45 ( 11/12 ) 11-22 2004.11

Research paper (scientific journal), Single Work

外資系企業のパフォーマンス

KIMURA FUKUNARI

経済統計研究 31 ( IV ) 65-73 2004.03

Research paper (scientific journal), Joint Work

Globalizing activities and the rate of survival

Kimura Fukunari, Fujii Takamune

Journal of the Japanese and International Economies 17 ( 4 ) 538 - 560 2003.12

ISSN 0889-1583

This paper conducts a Cox-type survival analysis of Japanese corporate firms using census-coverage data collected by METI. A study of exiting firms confirmed several characteristics of Japanese firms in the 1990s. First, excessive internalization in the corporate structure and activities is harmful to corporate survival. Having too many establishments and affiliates weakens corporate performance. Efficient concentration on core competences increases the probability of survival. Second, global commitment helps Japanese firms be more competitive and more likely to survive. However, the channels of a firm's global commitment must be carefully selected. Small firms can benefit from exporting activities, though having foreign affiliates or conducting foreign outsourcing might aggravate their performance. Large firms, on the other hand, can conduct foreign direct investment and foreign outsourcing to possibly enhance the probability of their survival. Third, while corporate performance affects the choice of exits for affiliate firms, it does not affect the survival/exit of independent firms; suggesting the possible malfunctioning of the market mechanisms in the exits of independent firms. Fourth, we do not find any statistically significant evidence that firms with foreign shareholders are more likely to exit; there is little evidence of foot-loose behavior among foreign companies. © 2003 Elsevier Inc. All rights reserved.

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Globalizing Activities and the Rate of Survival: Panel Data Analysis on Japanese Firms

KIMURA FUKUNARI

Journal of Japanese and International Economies 17 4 538-560 2003.12

Research paper (scientific journal), Joint Work

Fragmentation agglomeration matter

Kimura Fukunari, Ando Mitsuyo

North American Journal of Economics and Finance 14 ( 3 ) 287 - 317 2003.12

ISSN 1062-9408

This paper analyzes micro data of Japanese multinational enterprises (MNEs) to investigate differences between Latin America and East Asia from various viewpoints of their corporate activities. One of the crucial factors to make a sharp contrast is the development of international production/distribution networks utilizing the benefit of fragmentation and agglomeration. Japanese firms have played an important role in developing international production/distribution networks in East Asia while they have not yet either constructed a critical mass of industrial clusters or formulated efficient vertical chains of production in Latin America, where proper international commercial policies are the key for success. © 2003 Elsevier Inc. All rights reserved.

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経済学・政治経済学から見たセーフガード措置

KIMURA FUKUNARI

日本国際経済法学会年報 ( 12 ) 72-92 2003.10

Research paper (scientific journal), Single Work

Construction of FTA Networks in East Asia

KIMURA FUKUNARI

Japan Review of International Affairs 17 ( 3 ) 168-184 2003

Research paper (scientific journal), Single Work

東アジアにおけるFTA形成の動き：期待と懸念

KIMURA FUKUNARI

世界経済評論 46 ( 10 ) 6-9 2002.10

Research paper (scientific journal), Single Work

企業活動のグローバル化と企業パフォーマンス：『企業活動基本調査』にもとづく分析

KIMURA FUKUNARI

経済統計研究 30 ( II ) 1-12 2002.09

Research paper (scientific journal), Joint Work

自由貿易協定と農業問題

KIMURA FUKUNARI

三田学会雑誌 95 ( 1 ) 111-137 2002.05

Research paper (bulletin of university, research institution), Joint Work

Subcontracting and the performance of small and medium firms in Japan

Kimura Fukunari

Small Business Economics 18 ( 1-3 ) 163 - 175 2002

ISSN 0921-898X

This paper provides an empirical analysis of the choices made by Japanese firms with respect to subcontracting status, that is, whether to take in work as subcontractor, to outsource work to subcontractors, to do both or to do neither. It shows that the probability of working as a subcontractor, a choice made by many small firms in Japan, is negatively related to size, foreign sales and technological capability. Furthermore, profits do not appear to be higher for subcontracting firms; indeed, they are highest for the group that does not get involved in any type of subcontracting, whether as a supplier or as an outsourcer.

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The Dangers of Local Protectionism

KIMURA FUKUNARI

Journal of Japanese Trade and Industry 20 ( 6 ) 8-11 2001.11

Research paper (scientific journal), Single Work

平成不況期における日本企業の存続・退出と企業組織：ハザード・モデルを用いた企業の生存分析

木村福成

三田学会雑誌 93 ( 4 ) 2001.01

Research paper (bulletin of university, research institution), Joint Work

自由化を加速させる「新たな地域主義」の息吹

木村福成

経済セミナー ( 549 ) 2000.10

Single Work

通商政策の国際規律：WTO新ラウンドをめぐる古い問題と新しい課題

木村福成

国際問題 ( 486 ) 2000.09

Single Work

東アジア諸国における製造業事業所の規模分布と経済発展

木村福成

アジア経済 41 ( 3 ) 2000.05

Single Work

The International Competitiveness of the American Manufacturing Industry: The Perspective from International Trade Theory

Journal of International Economic Studies 14 2000.03

Research paper (scientific journal), Single Work

企業・事業所のミクロ実証分析：ロンジチュージナル・データを用いた諸研究の展望

清田　耕造,木村　福成

通産研究レビュー 14 2000.03

Joint Work

The Competitive Impact of International Trade

Nagaoka Sadao, Kimura Fukunari

Journal of the Japanese and International Economies 13 ( 4 ) 397 - 423 1999.12

ISSN 0889-1583

This paper analyzes the competitive impact of the recent import liberalization of the Japanese oil product market. In response to the import liberalization in March 1996, not only did the market price of gasoline decline sharply but also its domestic production kept rising and did not decline relative to imports. Moreover, its price fell substantially before the actual liberalization of the import. This paper demonstrates both theoretically and empirically that the theory of implicit cartel can explain such features of the impact of import liberalization very well. The paper also identifies the significantly positive welfare impact of such liberalization due to the expansion of supply in a market with a large tax wedge between price and cost and, possibly more importantly, due to the transformation of competitive conduct from unproductive investment for cartel-rent shifting into price cuts. J. Japan. Int. Econ., December 1999, 13(4), pp. 397-423. Hitotsubashi University; and Keio University. Copyright 1999 Academic Press. Journal of Economic Literature Classification Numbers: L40, F12, K21. © 1999 Academic Press.

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WTO Policy Principles: Special Consideration for Developing Countries

Japan Review of International Affairs 13 ( 4 ) 1999.12

Single Work

Sectoral price movements under the yen appreciation

Sazanami Yoko, Kimura Fukunari, Kawai Hiroki

Journal of the Japanese and International Economies 11 ( 4 ) 611 - 641 1997.12

ISSN 0889-1583

This paper analyzes the movements of tradable goods prices in Japan. The import price indices and the export price indices are matched with the domestic wholesale price indices at the most detailed level available for Japan, and the pricing behavior in the yen appreciation period (1985-1995) is examined. In the import-side analysis, we investigate how far the price movements under currency appreciation deviate from the law of one price. We find that internal-external price differentials have surprisingly expanded for most of the products since 1985. For a number of commodities, the import prices do not decline as far as the exchange rate appreciates, and the domestic wholesale prices do not decrease as far as the import prices decline. Although the expanded price gaps cannot necessarily be interpreted as a result of deliberate trade barriers, they suggest that some sort of handicap is imposed on imported goods and the large fraction of rent generated by the yen appreciation is intercepted in the middle. In the export-side analysis, the relationship between the globalization of firms' activities and export pass-through is investigated. Our cross-sectional regression analysis indicates that the export path-through rates tend to be low when the value added ratios of foreign production of Japanese firms are high. Low export pass-through under currency appreciation is often interpreted as a result of firms' attempts to keep their foreign market share, but the globalization of firms' activities may be another important factor in lowering the pass-through.J. Japan Int. Econ.,December 1997,11(4), pp. 611-641. Department of Economics, Keio University, 2-15-45 Mita, Minato-ku, Tokyo 108, Japan. © 1997 Academic Press.

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Sectoral Price Movements under the Yen Appreciation

KIMURA FUKUNARI

Journal of the Japanese and International Economies 611-641 1997.12

Research paper (scientific journal), Joint Work

企業国籍アプローチに基づくCGEモデルの構築：予備的考察

KIMURA FUKUNARI

『三田学会雑誌』 90 ( 2 ) 191-208 1997.07

Research paper (scientific journal), Joint Work

日系多国籍企業と経済統合：企業国籍アプローチの一応用

KIMURA FUKUNARI

『三田学会雑誌』 90 ( 2 ) 191-208 1997.07

Research paper (scientific journal), Single Work

日本企業の活動の国際化とアジアの経済統合

KIMURA FUKUNARI

『国際問題』 ( 447 ) 28-45 1997.06

Research paper (scientific journal), Single Work

為替増価の経済効果の研究

KIMURA FUKUNARI

『経済研究』、経済企画庁経済研究所編集 ( 148 ) 1997.03

Research paper (scientific journal), Single Work

日本企業の国際化と総合商社

KIMURA FUKUNARI

『国際経済』、（第５５回国際経済学会全国大会報告号「世界経済の一体化と日本企業の国際化」） 48 ( 1 ) 34-57 1997

Research paper (scientific journal), Joint Work

リレー連載６　WTOで何が変わったか：競争政策と国際経済政策

KIMURA FUKUNARI

経済セミナー 70-75 1996.12

Research paper (scientific journal), Single Work

内外価格差と貿易障壁：価格データを用いた実証分析

KIMURA FUKUNARI

『三田学会雑誌』 89 ( 2 ) 85-100 1996.07

Research paper (scientific journal), Joint Work

欧州における企業・事業所、直接投資関係統計の現状

KIMURA FUKUNARI

『経済統計研究』 24 ( II ) 1-16 1996

Research paper (scientific journal), Single Work

最適な経済統合：サロップ型製品差別化モデルに基づく考察

KIMURA FUKUNARI

三田学会雑誌 88 ( 2 ) 4-24 1995.07

Research paper (bulletin of university, research institution), Single Work

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