The impact of firms’ international trade on domestic suppliers: The case of Japan

Research output: Contribution to journalArticlepeer-review

Abstract

This study revisits the propagation of trade effects through inter-firm transactions with upstream domestic firms on five types of business indices. It uses Japanese buyer–seller relationship data constructed by applying more suitable criteria for sampling firms. The results show that upstream manufacturing firms lower the probability of closing by selling their products to downstream manufacturing firms which increase their exports or imports. Interestingly, few unfavorable outcomes of indirect trade shocks were observed. These findings suggest that the economic impact of firms’ international trade on upstream suppliers is more nuanced than just a substitute or complement between international and domestic trade.

Original languageEnglish
Article number101188
JournalJournal of The Japanese and International Economies
Volume63
DOIs
Publication statusPublished - 2022 Mar
Externally publishedYes

Keywords

  • Buyer–seller network
  • Closure
  • Trade

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics
  • Political Science and International Relations

Fingerprint

Dive into the research topics of 'The impact of firms’ international trade on domestic suppliers: The case of Japan'. Together they form a unique fingerprint.

Cite this