Fall 2008, Vol. 7, No. 3, Pages 101-124
(doi:10.1162/asep.2008.7.3.101)
Offshoring and Trade in East Asia: A Statistical Analysis*
Ryuhei Wakasugi
Institute of Economic Research, Kyoto University, Yoshida-honmachi, Sakyo-ku, Kyoto 606-8501, Japan. [email protected]
Banri Ito
Research Institute of Economy, Trade, and Industry, 1-4-2 Kasumigaseki Chiyodaku, Tokyo 100-0013, Japan. [email protected]
Eiichi Tomiura
Department of Economics, Yokohama National University, 79-4 Tokiwa-dai, Hodogaya-ku, Yokohama City 240-8501, Japan. [email protected]
Abstract
Japanese shares of export and manufacturing value-added in the global market have declined significantly, whereas those in China have risen sharply. This paper examines how recent increases in offshoring by Japanese firms relates to the changes in the composition of export, the structure of national production, and the international distribution of manufacturing value-added in Japan, China, East Asian countries, the United States, and European countries, on the basis of our original survey of Japanese firm's offshoring and the statistics of export and manufacturing production of these countries. It also discusses how the net cost saving of offshoring due to wage differentials and institutional factors will affect the sustainability of Japanese offshoring.
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