International Influences on Japanese Supply Chains

29 Pages Posted: 8 Feb 2017 Last revised: 17 Mar 2017

See all articles by Michal Fabinger

Michal Fabinger

University of Tokyo - Graduate School of Economics

Yoko Shibuya

Stanford University

Mina Taniguchi

Sciences Po

Date Written: January 31, 2017

Abstract

This paper investigates the transmission mechanism of Chinese productivity shocks through industry-level and firm-level networks in the Japanese manufacturing sector using an instrumental variable approach. We find that increased Chinese productivity in a particular industry negatively affects Japanese suppliers of Japanese firms in that industry (upstream propagation) and positively affects their Japanese corporate customers (downstream propagation). This is different from the recently studied case of the United States, which did not lead to evidence for downstream propagation of such shocks.

Keywords: Macroeconomic Shock Propagation, Firm Networks, International Trade

JEL Classification: E32, F41

Suggested Citation

Fabinger, Michal and Shibuya, Yoko and Taniguchi, Mina, International Influences on Japanese Supply Chains (January 31, 2017). Available at SSRN: https://ssrn.com/abstract=2912659 or http://dx.doi.org/10.2139/ssrn.2912659

Michal Fabinger (Contact Author)

University of Tokyo - Graduate School of Economics ( email )

Tokyo
Japan

HOME PAGE: http://sites.google.com/site/fabinger/

Yoko Shibuya

Stanford University ( email )

Landau Economics Building
579 Serra Mall
Stanford, CA 94305-6072
United States

Mina Taniguchi

Sciences Po ( email )

Rue de l'Université 13
Paris
France

HOME PAGE: http://https://sites.google.com/site/minataniguchi/

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