Ahn, Sanghoon, Fukao, Kyoji, Ito, Keiko
Applying a common empirical approach to comparable industry-level data on production, trade, and labor markets for Japan and South Korea, this paper aims to investigate the impacts of outsourcing on...
Ahn, Sanghoon, Fukao, Kyoji, Ito, Keiko
Applying a common empirical approach to comparable industry-level data on production, trade, and labor markets for Japan and South Korea, this paper aims to investigate the impacts of outsourcing on...
In spite of the importance of FDI in Japan, Japan’s official statistics on inward FDI have many drawbacks in comparison with U.S. statistics. Using micro-data of the Establishment and Enterprise...
Sanghoon Ahn, Kyoji Fukao, Hyeog Ug Kwon
Both Korea and Japan are leading exporting countries of advanced manufactured products, and the competitive and efficient manufacturing activities are important pillars of the affluence of the two...
Accumulation of Human Capital and the Business Cycle.
Characteristics of business cycles are quite different across developed countries. Real wages and working hours a re less sensitive to exogenous shocks in the United States than in Brit ain and...
Japanese Banks’ monitoring activities and the performance of borrower firms: 1981–1996
Kyoji Fukao, Kiyohiko Nishimura, Qing-Yuan Sui, Masayo Tomiyama
Main banks, Bank monitoring, Quantitative measure, Screening effects, Performance-improving effects, G21, G28,
The Extent and History of Foreign Direct Investment in Japan
The past few decades have seen a significant rise in foreign direct investment(FDI) worldwide. While Japanese companies have actively contributed to this trend, FDI in Japan continues to be much...
The 1990s have been a decade of minimal growth for the Japanese economy. Examining this record from a growth accounting perspective, this paper argues that a major factor underlying Japan's...
Kyoji Fukao, Debin Ma, Tangjun Yuan
This article provides the first expenditure approach estimate of purchasing power parity (PPP) converters for 1934-36 Japan, Korea and Taiwan. We matched all together 70 to 80 types of goods and...
China's Long-Term International Trade Statistics: By Commodity, 1952-1964 and 1981-2000
Kyoji Fukao, Kozo Kiyota, Ximing Yue
International trade has been a key engine driving Chinese economic growth in recent decades. Yet, long-term analyses of China's trade are still difficult because the country's trade statistics for...
Real GDP in Pre-War East Asia: A 1934-36 Benchmark Purchasing Power Parity Comparison with the U.S.
Kyoji Fukao, Debin Ma, Tangjun Yuan
This article provides estimates of purchasing power parity (PPP) converters for expenditure side GDP of Japan/China and Japan/U.S through a detailed matching of prices for more than 50 types of goods...
Foreign and Domestic R&D Investment
Rene Belderbos, Kyoji Fukao, Tomoko Iwasa
A considerable share of R&D investment is due to multinational firms that simultaneously operate R&D bases at home and abroad. The existing empirical literature on R&D investment has however ignored...
Inward Foreign Direct Investments and Productivity Growth in Japan
Firstly, this paper shows that before M&A the foreign firms value the facility and scale economy in target firms which have greater capital stock and sales in the host country. Secondly, out-in M&A...
Cross-Border Acquisitions and Target Firms' Performance: Evidence From Japanese Firm-Level Data
Kyoji Fukao, Keiko Ito, Hyeog Ug Kwon, Miho Takizawa
Using Japanese firm-level data for the period from 1994-2002, this paper examines whether a firm is chosen as an acquisition target based on its productivity level, profitability and other...
Plant Turnover and TFP Dynamics in Japanese Manufacturing
Kyoji Fukao, Young Gak Kim, Hyeog Ug Kwon
This study analyzes the cause of the slowdown in Japan's TFP growth during the 1990s. Many preceding studies, examining the issue at the macro- or industry-level, have found that the slowdown was...
Rene Belderbos, Kyoji Fukao, Hyeog Ug Kwon
We develop a model of the location of global R&D investments by multinational firms, where research investments increase the number of varieties of goods sold globally by the firm, and development...
Why Has the Border Effect in the Japanese Market Declined?
This paper analyzes the causes of the decline in Japan’s border effect by estimating gravity equations for Japan’s international and interregional trade in four machinery industries (electrical,...
Cross-Border Acquisitons and Target Firms' Performance: Evidence from Japanese Firm-Level Data
Kyoji Fukao, Keikok Ito, Hyeg Ug Kwon, Miho Takizawa
Using Japanese firm-level data for the period from 1994-2002, this paper examines whether a firm is chosen as an acquisition target based on its productivity level, profitability and other...
Deferred Compensation: Evidence from Employer-Employee Matched Data from Japan
Kyoji Fukao, Ryo Kambayashi, Daiji Kawaguchi, Hyeog Ug Kwon, Young Gak Kim, Izumi Yokoyama
Wage increases, along with job tenure, are one of the most robust empirical regularities found in labor economics. Several theories explain these empirical regularities, and such theories offer sharp...
Daiji Kawaguchi, Ryo Kambayashi, Young Gak Kim, Hyeog Ug Kwon, Satoshi Shimizutani, Kyoji Fukao, ...
Kyoji Fukao, Keiko Ito, Shigesaburo Kabe, Deqiang Liu, Fumihide Takeuchi
This paper analyzes the degree and the current status of localization of Japanese affiliates in China. For this purpose, we (1) compare the localization (measured in terms of the number of...
The Adjustment Speed of Employment at Foreign-Owned Firms
Is employment practice at foreign-owned firms different from that of Japan, the life-time employment system? Using firm level data of the Japanese manufacturing sector, this paper showed that the...
The Fisherian Time Preference and the Ebolution of Capital Ownership Patterns in a Global Economy
Conventionally economic growth theory was based on the assumption of a constant rate of time preference. Uzawa (1968) and Obstfeld (~, 1981) introduced the rate of time preference that increases with...
The Performance of Foreign Firms and the Macroeconomic Impact of FDI
In this paper, I examine the macroeconomic impact of inward FDI in Japan. From a general equilibrium point of view of the macroeconomy, probably the most important host country benefit of inward FDI...
Kigyo jigyosho no sannyu-taishutsu to sangyo level no seisansei [in Japanese]
Young Gak Kim, Hyeog Ug Kwon, Kyoji Fukao
TFP, Labor productivity, Micro data, Entry, Exit
An Econometric Analysis of Trade Diversion under NAFTA
Kyoji Fukao, Toshihiro Okubo, Robert M Stern
We provide an econometric analysis of whether or not the tariff preferences extended to Canada and Mexico under NAFTA may have resulted in trade diversion. A review of previous studies, both...
The Performance of Foreign Firms and the Macroeconomic Impact of FDI
In this paper, I examine the macroeconomic impact of inward FDI in Japan. From a general equilibrium point of view of the macroeconomy, probably the most important host country benefit of inward FDI...
Kyoji Fukao, Keiko Ito, Shigesaburo Kabe, Deqiang Liu, Fumihide Takeuchi
This paper analyzes the degree and the current status of localization of Japanese affiliates in China. For this purpose, we (1) compare the localization (measured in terms of the number of...
Plant Turnover and TFP Dynamics in Japanese Manufacturing
Kyoji Fukao, Young Gak Kim, Hyeog Ug Kwon
This study analyzes the cause of the slowdown in Japan’s TFP growth during the 1990s. Many preceding studies, examining the issue at the macro- or industry-level, have found that the slowdown was...
Cross-Border Acquisitons and Target Firms' Performance: Evidence from Japanese Firm-Level Data
Kyoji Fukao, Keiko Ito, Hyeg Ug Kwon, Miho Takizawa
FDI, TFP, Acquisition, Selection bias, Propensity score matching, Average treatment effect abstract: Using Japanese firm-level data for the period from 1994-2002, this paper examines whether a firm...
This paper analyzes the causes of the decline in Japan's border effect in four machinery industries (electrical, general, precision, and transportation machinery) by estimating gravity equations for...
An International Comparison of the TFP Levels of Japanese, Korean and Cinese Listed Firms
Kyoji Fukao, Tomohiko Inui, Shigesaburo Kabe, Deqiang Liu
The study group on the Creation of a Productivity Database on Japanese, Chinese, and South Korean Firms at the Japan Center for Economic Research (JCER), in conjunction with the Center for Economic...
How do the Location Determinants of Vertical FDI and Horizontal FDI Differ?
Distinguishing between vertical and horizontal foreign direct investment (FDI), this paper examines how the location determinants of the two types of FDI differ. Based on a conditional logit model...
REAL GDP IN PRE-WAR EAST ASIA: A 1934-36 BENCHMARK PURCHASING POWER PARITY COMPARISON WITH THE U.S.
Kyoji Fukao, Debin Ma, Tangjun Yuan
This article provides estimates of purchasing power parity (PPP) converters for expenditure side GDP of Japan/China, Japan/U.S. and China/U.S. in 1934-36 through a detailed matching of...
Kyoji Fukao, Debin Ma, Tangjun Yuan
This paper provides the first estimate of consumption purchasing power parity (PPP) converters for 1934-36 Japan, Korea and Taiwan by matching prices of more than 50 types of goods and services with...
Using industry-level data of the Japan Industrial Productivity Database (JIP Database) and firm-level data of the Ministry of Economy, Trade and Industry's Basic Survey of Enterprises, we investigate...
Kyoji Fukao, Keiko Ito, Hyeog Ug Kwon
This paper compares the performance of foreign-owned and domestically-owned firms, using micro data on Japanese firms in the manufacturing sector for the period 1994-2000. The overall comparison...
Japanese Banks' Monitoring Activities and the Performance of Borrower Firms: 1981-1996
Kyoji Fukao, Kiyohiko G. Nishimura, Qing-Yuan Sui, Masayo Tomiyama
Using micro data of Japanese banks and borrower firms, we construct an index measure that quantitatively describes the monitoring activities of Japanese banks. We examine the effects of bank...
Physical and Human Capital Deepening and New Trade Patterns in Japan
This paper investigates the deepening of the international division of labor and its effect on factor intensities in Japan, mainly focusing on the manufacturing sector. In the first half of the...
This paper analyzes the causes of the decline in Japanfs border effect by estimating gravity equations for Japanfs international and interregional trade in four machinery industries (electrical,...
Hyoeg Ug Kwon, Keiko Ito, Kyoji Fukao
Gaishikei kigyo, Taishutsu, Koyoseichouritsu
This paper empirically examines the impact of recent changes in Japan's trade patterns on domestic factor markets. According to our factor content analysis, Japan's net-exports changed in a direction...
This paper shows that in the short run an increase in foreign firms' industry share lowers the TFP growth of Japanese firms as a result of the decrease in market power. However, in the long run, the...
"Banks' Monitoring and Profitability of Borrowing Firms"(in Japanese)
Masayo Tomiyama, Kyoji Fukao, Qing-yuan Sui, Kiyohiko G. Nishimura
We constructed measures representing the magnitude of Japanese banks' monitoring activities and tested two competing hypotheses about nature of banks' monitoring, (1) the monitoring improved...
An Econometric Analysis of Trade Diversion under NAFTA
Kyoji Fukao, Toshihiro Okubo, Robert M. Stern
We provide an econometric analysis of whether or not the tariff preferences extended to Canada and Mexico under NAFTA may have resulted in trade diversion. A review of previous studies, both...
Vertical Intra-Industry Trade and Foreign Direct Investment in East Asia
Kyoji Fukao, Hikari Ishido, Keiko Ito
As economic integration in East Asia progresses,trade patterns within the region are displaying an ever-greater complexity: Though inter-industry trade still accounts for the majority,its share in...
Coordination Failures under Incomplete Information and Global Games
Carlsson and van Damme (1991, 93) presented a notion of a global game, which is an incomplete information game where the actual payoff structure is affected by a realization of a common shock and...
Physical and Human Capital Deepening and New Trade Patterns in Japan
This paper investigates the deepening of the international division of labor and its effect on factor intensities in Japan, mainly focusing on the manufacturing sector. In the first half of the...
This paper analyzes the causes of the decline in Japan's border effect by estimating gravity equations for Japan's international and interregional trade in four machinery industries (electrical,...
Kyoji Fukao, Keiko Ito, Hyeog Ug Kwon
This paper compares the performance of foreign-owned and domestically-owned firms, using micro data on Japanese firms in the manufacturing sector for the period 1994-2000. The overall comparison...
An International Comparison of the TFP Levels of Japanese, Korean and Chinese Listed Firms
Kyoji Fukao, Tomohiko Inui, Shigesaburo Kabe, Deqiang Liu
The study group on the Creation of a Productivity Database on Japanese, Chinese, and South Korean Firms at the Japan Center for Economic Research (JCER), in conjunction with the Center for Economic...
Strategic Aspects of International Lending and Borrowing: A Two-Country Dynamic Game Model
This paper is a consideration of strategic aspects of national saving policies in a game theory setting. In pure exchange economy involving two countries, each government chooses a future time path...
International Trade and Investment under Different Rates of Time Preference
This paper attempts to integrate the theory of trade with that of capital movements, and to study the two country world where each nation has a different rate of time preference. It resolves the...
Accumulation of Human Capital, Labor Market Hysteresis, and the Business Cycle
Characteristics of business cycles are quite different across developed countries. As Gordon (1982) pointed out, in the United States real wages and the adjustment of working hours are less flexible...
Accmulation of Human Capital and Business Cycle
Characteristics of business cycles are quite different across developed countries. As Gordon (1982) pointed out, in the United States real wages and the adjustment of working hours are less flexible...
Coordination Failures under Incomplete Information and Global Ggames
Recently Carlsson and van Damme(1993a, 1993b)presented the notion of a global game, which is an incomplete information game where the actual payoff structure is affected by the realization of a...
Kyoji Fukao, Toshiyasu Izawa, Morio Kuninori, Toru Nakakita
This paper studies determinants of the decision to invest abroad. Among them, we follow the current mainstream theory of foreign direct investment so as to emphasize the stock of technological...
An Econometric Analysis of Trade Diversion under NAFTA
Kyoji Fukao, Toshihiro Okubo, Robert M. Stern
We provide an econometric analysis of whether or not the tariff preferences extended to Canada and Mexico under NAFTA may have resulted in trade diversion. A review of previous studies, both...
Vertical Intra-Industry Trade and Foreign Direct Investment in East Asia
Kyoji Fukao, Hikari Ishido, Keiko Ito
As economic integration in East Asia progresses, trade patterns within the region are displaying an ever-greater complexity: Though inter-industry trade still accounts for the majority, its share in...
Using micro-data of the Establishment and Enterprise Census, we compile new statistics on the employment of Japanese affiliates of foreign firms at the 3-digit industry level for the year 1996. We...
Kyoji Fukao, Debin Ma, Tangjun Yuan
This paper provides the first estimate of consumption purchasing power parity (PPP) converters for 1934-36 Japan, Korea and Taiwan by matching prices of more than 50 types of goods and services with...
Vertical Intra-Industry Trade and the Division of Labor in East Asia
This paper investigates the deepening of the international division of labor and its effect on factor intensities in Japan, mainly focusing on the manufacturing sector. In the first half of the...
The Effects of Overseas Operations on Home Employment of Japanese Multinational Enterprises
Nobuaki Yamashita, Kyoji Fukao
This paper examines the hypothesis that expansion of overseas operations of Japanese manufacturing multinational enterprises (MNEs) reduces home employment. While the existing studies are mainly...
Outsourcing in East Asia and its impact on the Japanese and Korean Labour Markets
Sanghoon Ahn, Kyoji Fukao, Keiko Ito
This study describes the changing patterns of intermediate goods trade and foreign direct investment (FDI) in East Asia and investigates the impacts of international outsourcing on the Japanese and...
International Trade and Investment under Different Rates of Time Preferences
This paper attempts to integrate the theory of trade with that of capital movements, and to study the two country world where each nation has a different rate of time preference. It resolves the...
Physical and Human Capital Deepening and New Trade Patterns in Japan
This paper investigates the deepening of the international division of labor and its effect on factor intensities in Japan, mainly focusing on the manufacturing sector. In the first half of the...
Sanghoon Ahn, Kyoji Fukao, Keiko Ito
Applying a common empirical approach to comparable industry-level data on production, trade,and labor markets for Japan and South Korea, this paper aims to investigate the impacts of outsourcing on...
Trade Sensitivity to Exchange Rates in the Context of Intra-Industry Trade
Yoko Oguro, Kyoji Fukao, Yougesh Khatri
This paper theoretically and empirically investigates export sensitivity to exchange rates in the context of intra-industry trade (IIT). It is assumed that more IIT implies a smaller elasticity of...
Intangible Investment in Japan: New Estimates and Contribution to Economic Growth
Kyoji Fukao, Tsutomu Miyagawa, Kentaro Mukai, Yukio Shinoda, Konomi Tonogi
The purpose of this paper is to measure intangible assets, to construct the capital stock of intangible assets, and to examine the contribution of intangible capital to economic growth in Japan. We...
Kyoji Fukao, Harry X. Wu, Tangjun Yuan
Following the standard methodology for measuring industry-of-origin or production-side PPPs, this study compares the unit values of manufacturing products in China, Japan, Korea and the US to...
Kyoji Fukao, Harry X. Wu, Tangjun Yuan
Following the standard methodology for measuring industry-of-origin or production-side PPPs, this study compares the unit values of manufacturing products in China, Japan, Korea and the US to...
The Japan-U.S. Exchange Rate, Productivity, and the Competitiveness of Japanese Industries
In this paper, we focus on the movements of the yen on Japanese industries, and on the sectoral reallocation of Japanese employment. We show that the appreciation episodes of 1985 and 1995 have...
Fukao, Kyoji, Wu, Harry X., Yuan, Tangjun
Following the standard methodology for measuring industry-of-origin or productionside PPPs, this study compares the unit values of manufacturing products in China, Japan, Korea and the US to...
Ahn, Sanghoon, Fukao, Kyoji, Ito, Keiko
Applying a common empirical approach to comparable industry-level data on production, trade, and labor markets for Japan and South Korea, this paper aims to investigate the impacts of outsourcing on...
The Japan-U.S. Exchange Rate, Productivity, and the Competitiveness of Japanese Industries
In this paper, we focus on the movements of the yen on Japanese industries, and on the sectoral reallocation of Japanese employment. We show that the appreciation episodes of 1985 and 1995 have...
Gross Prefectural Domestic Product and Industrial Structure in Pre-war Japan [in Japanese]
Tangjun Yuan, Tokihiko Settsu, Jean-Pascal Bassino, Kyoji Fukao
Studies comparing regional income in Japan before and after World War II have frequently drawn a picture of radical change from an economy characterized by large regional disparities to one...
Foreign and domestic R&D investment
Rene Belderbos, Kyoji Fukao, Tomoko Iwasa
A considerable share of R&D investment is due to multinational firms that simultaneously operate R&D bases at home and abroad. We develop a simple model of foreign and domestic R&D investment and...
Foreign Direct Investment in Japan
Foreign Direct Investment in Japan presents a detailed examination of recent trends of inward foreign direct investment (FDI) and their impact on the Japanese economy. Historically much less open to...
INTANGIBLE INVESTMENT IN JAPAN: MEASUREMENT AND CONTRIBUTION TO ECONOMIC GROWTH
Kyoji Fukao, Tsutomu Miyagawa, Kentaro Mukai, Yukio Shinoda, Konomi Tonogi
Following the approach of Corrado, Hulten, and Sichel (2005, 2006), we measure intangible investment and examine the contribution of intangible capital to economic growth in Japan. We find that the...