Evaluating the impact of trade remedy measures on mature Japanese industries

Abstract

Japan has recently initiated the implementation of trade remedy measures, although on a limited scale, with a primary focus on mature industries such as basic chemicals. This study analyzes the impact of these measures on beneficiary Japanese firms using an event study approach on stock prices. It aims to contribute to existing literature by providing a case analysis of Japanese trade remedy cases that have not been explored. It was found that beneficiary firms saw a statistically significant increase in market value following affirmative final determinations, particularly in expiry investigations. Further analysis revealed that the value increases were seen by firms that steadily conducted R&D activities and those that managed to maintain production without exiting or restructuring their operations. This suggests that trade remedy measures are not merely lifelines for mature and declining industries.