Abstract
We reconstructed the 2007 Japan–China International Input–Output Table as one that extracts Japanese production activities from China, using microdata of about 3,600 establishments in the METI Statistics “Survey of Overseas Business Activities.” The recompiled input–output table consists of Japan, China (minus Japanese subsidiaries), and Japanese subsidiary activities in China with 30 sectors for each. Using this table, we discuss two topics. One is the regional contribution of value-added and imports against a one-unit increase of final demand in the Japanese subsidiary sector. The other is a simulation analysis of the production shift from Japan to China.
Highlights
The globalization of economies has prompted firms in developed countries to expand their plants and branches to foreign countries, and to supply their products to countries worldwide
The Chinese economy has been continuously growing after the introduction of market mechanisms into its own economy
In those papers, using the 1995 Japan–US International Input–Output Table of METI, we investigated the impact analysis of Japanese overseas production in the US on the Japanese economy
Summary
The globalization of economies has prompted firms in developed countries to expand their plants and branches to foreign countries, and to supply their products to countries worldwide. We will focus on the production activities of Japanese subsidiaries in China, and investigate the role of Japanese firms in the economic relations between Japan and China, revising the Japan–China International Input–Output Table to include production activities of Japanese subsidiaries in China as distinct sectors. The basic idea of revising an international input–output table to include Japanese overseas activities as distinct sectors was proposed in Yamada (2002). In those papers, using the 1995 Japan–US International Input–Output Table of METI, we investigated the impact analysis of Japanese overseas production in the US on the Japanese economy.
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