Title
The Impact of Import Competition on Japanese Manufacturing Employment
Abstract
Although previous studies of the effect of imports on Japanese
employment relied on relatively aggregate data, the variability
among industries is substantial within each two-digit sector. This paper exploits
recently available longitudinal data of 390 manufacturing industries
and controls for industry-specific factors at the four-digit level. This paper
finds the significant impact of import price changes on Japanese
employment. The estimates suggest that substantial share of average employment
decline can be accounted for by the intensified import competition
and that the employment sensitivity increases with industry import share. All
these findings are significant especially for the yen appreciating
recession years.
Eiichi TOMIURA
Research Institute for Economics and Business Administration
Kobe University
Rokkodai-cho, Nada-ku, Kobe
657-8501 Japan
Phone: (81) 78 803 7036
Fax: (81) 78 803 7059