Abstract
There is a controversy in the USA and several European countries on whether or not an increase in imports in manufacturing goods from low‐wage developing countries has major effects on employment and wages in industrialized countries. This paper examines the issue for Japanese imports, paying a particular attention to the effect of manufacturing imports from Asian countries on employment and wages in Japan. It is found that the effect has not been large to date, but that there could be negative effects on employment and, in particular, wages if imports from China and India were to increase substantially.
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