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Begin New Search Political Geography Japan Content Type Research Paper

1. The Impact of COVID-19 on Global Production Networks: Evidence from Japanese Multinational Firms

Author:
Hongyong Zhang
Publication Date:
03-2021
Content Type:
Research Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Using aggregate-level data on Japanese multinational corporations (MNCs) in major host countries and regions, this paper investigates the impact of COVID-19 on global production and supply chains with a focus on East Asia. I use the numbers of COVID-19 cases and deaths as measures of the impact of the pandemic. I find that the pandemic had substantial impacts on the performance (sales, employment, and investment) of Japanese MNCs and global supply chains (exports to Japan and exports to third countries) in Q1–Q3 2020. China recovered quickly in Q2 and grew in Q3, whilst the countries of the Association of Southeast Asian Nations and the rest of the world had still not fully recovered in Q3 2020. Importantly, lockdown and containment policies in host countries had large negative impacts on the sales and employment of Japanese MNCs. In contrast, I did not find positive effects of economic support policies on firm performance. Interestingly, whilst the firm expectations and business plans of Japanese MNCs were negatively affected by the COVID-19 pandemic, their business confidence increased with strong overall government policy responses in host countries in Q1 2020.
Topic:
Economic Development, Pandemic, COVID-19, and Production
Political Geography:
Japan and Asia

2. Demand and Supply Shocks of COVID-19 and International Production Networks: Evidence from Japan’s Machinery Trade

Author:
Mitsuyo Ando
Publication Date:
03-2021
Content Type:
Research Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This paper investigated the impacts of COVID-19 on international production networks in machinery sectors by shedding light on negative supply shocks, negative demand shocks, and positive demand shocks. Specifically, we examined changes in trade in the periods of falling trade during the first wave of COVID-19 using Japan’s machinery trade at the most disaggregated level and decomposed them into two intensive margins, i.e. the quantity effect and the price effect, and two extensive margins, i.e. the entry effect and the exit effect. Our empirical results demonstrated that i) trade relationships for parts and components are robust, and international production networks are almost intact, so far; ii) the intensive margin, mostly the negative quantity effect, induces the largest negative effects in the transport equipment sector amongst four machinery sectors; iii) positive demand shocks for specific products that are related to teleworking, disinfection, and stay-home activities partially explain sectoral differences; iv) direct negative supply shocks from China, suggested by a negative quantity effect and a positive price effect, exist in February 2020, with possible indirect negative supply shocks and substitution of source countries; and v) negative demand shocks are confirmed from negative quantity and price effects in many cases. As of October 2020, Japan’s machinery trade seems to have largely recovered. If the COVID-19 pandemic lasts long, however, prolonged negative demand shocks would hurt production networks in East Asia.
Topic:
Demand, Manufacturing, Economic Development, Pandemic, Industry, COVID-19, and Supply
Political Geography:
Japan and Asia

3. Demand and Supply Shocks of COVID-19 and International Production Networks: Evidence from Japan’s Machinery Trade

Author:
Mitsuyo Ando
Publication Date:
03-2021
Content Type:
Research Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This paper investigated the impacts of COVID-19 on international production networks in machinery sectors by shedding light on negative supply shocks, negative demand shocks, and positive demand shocks. Specifically, we examined changes in trade in the periods of falling trade during the first wave of COVID-19 using Japan’s machinery trade at the most disaggregated level and decomposed them into two intensive margins, i.e. the quantity effect and the price effect, and two extensive margins, i.e. the entry effect and the exit effect. Our empirical results demonstrated that i) trade relationships for parts and components are robust, and international production networks are almost intact, so far; ii) the intensive margin, mostly the negative quantity effect, induces the largest negative effects in the transport equipment sector amongst four machinery sectors; iii) positive demand shocks for specific products that are related to teleworking, disinfection, and stay-home activities partially explain sectoral differences; iv) direct negative supply shocks from China, suggested by a negative quantity effect and a positive price effect, exist in February 2020, with possible indirect negative supply shocks and substitution of source countries; and v) negative demand shocks are confirmed from negative quantity and price effects in many cases. As of October 2020, Japan’s machinery trade seems to have largely recovered. If the COVID-19 pandemic lasts long, however, prolonged negative demand shocks would hurt production networks in East Asia.
Topic:
Demand, Manufacturing, Economic Development, Pandemic, Industry, COVID-19, and Supply
Political Geography:
Japan and Asia

4. Demand and Supply Shocks of COVID-19 and International Production Networks: Evidence from Japan’s Machinery Trade

Author:
Mitsuyo Ando
Publication Date:
03-2021
Content Type:
Research Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This paper investigated the impacts of COVID-19 on international production networks in machinery sectors by shedding light on negative supply shocks, negative demand shocks, and positive demand shocks. Specifically, we examined changes in trade in the periods of falling trade during the first wave of COVID-19 using Japan’s machinery trade at the most disaggregated level and decomposed them into two intensive margins, i.e. the quantity effect and the price effect, and two extensive margins, i.e. the entry effect and the exit effect. Our empirical results demonstrated that i) trade relationships for parts and components are robust, and international production networks are almost intact, so far; ii) the intensive margin, mostly the negative quantity effect, induces the largest negative effects in the transport equipment sector amongst four machinery sectors; iii) positive demand shocks for specific products that are related to teleworking, disinfection, and stay-home activities partially explain sectoral differences; iv) direct negative supply shocks from China, suggested by a negative quantity effect and a positive price effect, exist in February 2020, with possible indirect negative supply shocks and substitution of source countries; and v) negative demand shocks are confirmed from negative quantity and price effects in many cases. As of October 2020, Japan’s machinery trade seems to have largely recovered. If the COVID-19 pandemic lasts long, however, prolonged negative demand shocks would hurt production networks in East Asia.
Topic:
Demand, Manufacturing, Economic Development, Pandemic, Industry, COVID-19, and Supply
Political Geography:
Japan and Asia

5. East Asian Integration and Its Main Challenge: NTMs in Australia, China, India, Japan, Republic of Korea, and New Zealand

Author:
Yan Lili Ing and Grace Hadiwidjaja
Publication Date:
07-2021
Content Type:
Research Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
While East Asia has been moving forward with its regional integration agenda, one main challenge remains and is growing – non-tariff measures (NTMs). Animal, vegetable, and food products tend to be more regulated than other products, largely due to quality and safety standards. NTMs affect 66%–98% of total trade in those sectors. Our paper presents the frequency index, coverage ratio, and prevalence score to measure NTMs in the region. They are highest amongst food, vegetable, and animal products; and vary amongst other products, depending on the economy. We find that the high frequency index of NTMs does not necessarily translate to a high value of coverage ratio for trade. One explanation could be that countries tend to regulate imported goods which compete with the domestic products more than imported goods which they need.
Topic:
Globalization, International Trade and Finance, Regional Cooperation, Tariffs, Non-Tariff Measures, and Economic Integration
Political Geography:
Japan, China, India, Asia, South Korea, Australia, Southeast Asia, and New Zealand

6. Identifying the Impact of Supply Chain Disruption Caused by COVID-19 on Manufacturing Production in Japan

Author:
Tadashi Ito
Publication Date:
09-2021
Content Type:
Research Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
COVID-19 has disrupted all aspects of our lives, including international trade. This paper investigates the effect of supply chain disruption on production activities, in particular by exploiting the difference in the timing of the lockdowns in China and Japan. Using monthly production data, monthly export and import data, Japan’s input–output tables, and international input–output tables, the analyses find evidence of a negative impact of supply chain disruption by COVID-19 on Japan’s manufacturing production activities.
Topic:
Manufacturing, Pandemic, COVID-19, Supply Chains, and Production
Political Geography:
Japan and Asia

7. New Frontiers for Security Cooperation with Seoul and Tokyo

Author:
Henry D. Sokolski
Publication Date:
02-2021
Content Type:
Research Paper
Institution:
Nonproliferation Policy Education Center
Abstract:
With a new Democratic administration, Washington is almost certain to moderate its demands that Japan and South Korea pay more for American forces on their soil. This should ease tensions with Seoul to Tokyo. To strengthen security relations with Japan and South Korea, though, more will be required. Rather than simply increase their conventional military deployments, Washington, Seoul, and Tokyo will need to collaborate in new ways to enhance allied security. This will entail working more closely on new military frontiers, such as enhancing allied command of outer and cyber space as well as in underwater warfare. Washington, Seoul, and Tokyo will also want to carve out new functional areas of cooperation to make existing energy sources more secure, communications more reliable, data sharing easier and safer, and allied economic assistance to developing nations in strategic zones more effective. Enhanced collaboration in each of these areas has begun but is not yet locked in or fully institutionalized. It should be. Washington, Seoul, and Tokyo need one another to deal with China and North Korea. Yet, how each currently strategically views Beijing and Pyongyang differs. Nor is America’s preferred military approach to deterring Chinese and North Korean adventurism — by preventing Beijing and Pyongyang from projecting military strikes against their neighbors — all that easy to achieve. Adding new, more tractable items to America’s Asian security alliance agenda won’t immediately eliminate these misalignments. But it will strengthen the security ties they have as liberal democracies — bonds Beijing and Pyongyang are straining to fray.
Topic:
International Cooperation, Nuclear Weapons, Science and Technology, International Security, Military Affairs, Cyberspace, and Nuclear Energy
Political Geography:
United States, Japan, China, and South Korea

8. Rethinking Human Security amid the Coronavirus Crisis: Thoughts on Japan's Contributions During and After the Pandemic

Author:
Sachiko Ishikawa
Publication Date:
05-2021
Content Type:
Research Paper
Institution:
Japan Institute Of International Affairs (JIIA)
Abstract:
With the COVID-19 pandemic threatening the lives and livelihoods of all people on Earth, UN Secretary-General Guterres from the outset has called for more international solidarity and cooperation than ever to respond to the coronavirus. Today, after a quarter of a century since the concept of human security was first brought to the world by the UNDP in 1994, the pandemic struck just as the importance of reconsidering its value and implementation in light of changes within the international community was being debated. In 2020, discussions about rethinking the concept and practice of human security in the context of the coronavirus pandemic increased, especially among academic societies and aid workers in Japan.
Topic:
Recovery, Human Security, and COVID-19
Political Geography:
Japan and Global Focus

9. Japan's Leadership on Aging Societies

Author:
Yumiko Murakami
Publication Date:
06-2021
Content Type:
Research Paper
Institution:
Japan Institute Of International Affairs (JIIA)
Abstract:
The decline in Japan's birthrate and the aging of its population are rapidly accelerating. Senior citizens aged 65 or over numbered 36.17 million in 2020, accounting for 28.7% of the general population, and both the absolute number of senior citizens and the population aging rate set new all-time highs1. Looking back, the ratio of elderly people went from less than 5% in 1950 to more than 14% in 1995 and then to 23% in 2010, surpassing the 21% level that defines super-aging. A drop of 290,000 from the previous year in Japan's 2020 population marked the start of a downtrend, and the aging of that population is expected to pick up speed. An estimate by the National Institute of Population and Social Security Research contends that the ratio of elderly people will reach 35.3% in 2040, when the generation born during the second baby-boom period (1971-1974) will be 65 years or older.
Topic:
Demographics, Leadership, and Aging
Political Geography:
Japan and Asia

10. The New Taiwan Clause: Taiwan and the Security of Japan

Author:
Tetsuo Kotani
Publication Date:
06-2021
Content Type:
Research Paper
Institution:
Japan Institute Of International Affairs (JIIA)
Abstract:
A summit meeting between Prime Minister Yoshihide Suga and President Joe Biden was held on April 16, 2021, followed by a joint statement. In the statement, for the first time in the 52 years since 1969, the importance of the security of the Taiwan Strait was emphasized by the leaders of Japan and the United States, confirming that both countries are increasingly concerned about the current situation regarding Taiwan. According to a poll conducted by Nikkei Inc. after the summit, 50% of the Japanese public considered the U.S.-Japan summit itself as "positive" (32% "negative"), and 74% of the respondents "agreed" that Japan should be involved in stabilizing the Taiwan Strait, while only 13% "disagreed." These figures were received with some surprise by experts. This paper will analyze these changes in Japan's perception of Taiwan, and then examine the issues that Japan should address in the future following the recent Japan-U.S. joint statement.
Topic:
Security, Foreign Policy, and Diplomacy
Political Geography:
Japan, Taiwan, Asia, and United States of America

11. Learning to Love Trade Again

Author:
Frank Lavin and Oscar Guinea
Publication Date:
06-2020
Content Type:
Research Paper
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
We are at the moment, the first in seventy-five years, where there is no international consensus in support of trade. Indeed, trade is unloved, unsupported, and even unwanted. There is no shortage of topics in the rhetoric of trade complaints: from the rapid rise of China to Coronavirus as a metaphor for the evils of greater connectivity. Regardless of the validity of these complaints, none of them negate the central truth of trade: countries that engage in trade move ahead, and those that do not, stagnate. Our political leaders disagree. Anti-trade positions are held by leaders across the political spectrum, from Donald Trump to Bernie Sanders. And yet, the public is increasingly warm to the idea of trade. When Gallup asks Americans, “Do you see foreign trade more as an opportunity for economic growth through increased U.S. exports or a threat to the economy from foreign imports?” a record high of 79% see trade as an opportunity, with 18% viewing it as a threat. How did the world arrive at this moment where the benefits of trade are clearly evidenced while trade has become politically toxic? We identify four main factors: (i) U.S. absenteeism from the leadership role; (ii) detachment between trade and security architecture; (iii) no alternative leadership in Europe or elsewhere; and (iv) the cumbersome WTO process. Against this background we put forward five initiatives that will be big enough to count but unobjectionable enough to be adopted. The Big Three. The U.S., EU, and Japan, should establish a consultative body on trade to forge a new approach that allows trade to move ahead in the absence of universal consensus. No harm, no foul. Each of the Big Three should commit to zero tariffs on any item not produced in each particular market. A de minimis strategy. Tariffs should be eliminated on all products where the current tariff is less than 2%. At that level tariffs are simply a nuisance fee. Mind the social costs. Expand the Nairobi Protocols to include health products and green tech. Scrapping import tariffs on medical and green goods would not only encourage additional trade but will also provide health and environmental benefits. Harmonize down. The Big Three should commit that on every tariff line each of the three will be no worse than the next worse. In other words, each of the Big Three will agree to reduce its tariff on every product where it has the highest tariff of the three. These actions will spur the WTO, not undermine it. The measures we propose can be set up on a plurilateral basis that would allow other trading powers to participate. By breaking away from the tyranny of universal consensus, these actions will encourage the trading community – including the WTO – to get back in forward motion. In some respect, convergence between the Big Three is already happening. The EU and Japan signed an FTA that lowers import tariffs between these two economies, while the U.S. and Japan agreed to negotiate a comprehensive FTA. And if China is willing to step up? China should be welcomed into this group if it supports the four initiatives, changing the Big Three to the Big Four.
Topic:
International Political Economy, International Trade and Finance, Global Markets, Trade, and WTO
Political Geography:
United States, Japan, China, Europe, and Global Focus

12. A Reality Check on Security Policies: The New Security Legislation/Guidelines and Circumstances on the Korean Peninsula and in the Middle East

Author:
Japan Institute for International Affairs
Publication Date:
01-2016
Content Type:
Research Paper
Institution:
Japan Institute Of International Affairs (JIIA)
Abstract:
Confronted with a challenging security environment, the Japanese government formulated a “National Security Strategy” in 2013 and then amended the National Defense Program Guidelines (NDPG) and the Medium Term Defense Program (MTDP) accordingly. To ensure a seamless response to any situation threatening the nation’s security and prosperity, the Cabinet adopted a resolution in July of last year regarding the legal foundations for security (security legislation). Against this backdrop, the Guidelines for Japan-US Defense Cooperation (“the Guidelines”) were revised and efforts made to pass the proposed security legislation.
Topic:
International Security
Political Geography:
Japan

13. Security Policy Research Group

Author:
Japan Institute for International Affairs
Publication Date:
01-2016
Content Type:
Research Paper
Institution:
Japan Institute Of International Affairs (JIIA)
Abstract:
This Research Group will assess the new security legislation and the revised Guidelines, and conduct reality checks of Japan’s new security policy and the Japan-US alliance. In carrying out studies/research on the implications of enacting security legislation and revising the US-Japan Guidelines, this Research Group will work with the two regional research groups being set up independently and simultaneously to jointly carry out the simulations that are the central focus of this project
Topic:
International Security
Political Geography:
Japan