TY - JOUR
T1 - Welfare gains through globalization
T2 - Evidence from Japan's manufacturing sector
AU - Aoyagi, Takahide
AU - Ito, Tadashi
AU - Matsuura, Toshiyuki
N1 - Funding Information:
The authors acknowledge the financial support of the Japan Society of Promotion of Science (KAKENHI) Grant-in-aid for Scientific Research 26380354 and 18H03637 for this research. The authors appreciate the comments to the previous version of the draft from Kazunobu Hayakawa and participants of the 75th Annual Meeting of the Japan Society of International Economics.
Funding Information:
The authors acknowledge the financial support of the Japan Society of Promotion of Science (KAKENHI) Grant-in-aid for Scientific Research 26380354 and 18H03637 for this research. The authors appreciate the comments to the previous version of the draft from Kazunobu Hayakawa and participants of the 75th Annual Meeting of the Japan Society of International Economics.
Publisher Copyright:
© 2022
PY - 2022/6
Y1 - 2022/6
N2 - Welfare gains achieved through international trade are a cornerstone of the literature on international economics. However, the data and research methods needed to empirically assess these welfare gains have only recently become available. Building on recently developed methodologies for estimating the elasticity of substitution and computing welfare gains from trade, we estimate Japan's welfare gains from liberalizing trade in the manufacturing sector. To do so, we estimate the elasticities of substitution using Japanese customs data at Harmonized System (HS) 9-digit product codes. The analysis shows that Japan's welfare gains from trade liberalization occurred especially from the end of the 1990s onward, and reached 16 percent vis-à-vis the autarky situation.
AB - Welfare gains achieved through international trade are a cornerstone of the literature on international economics. However, the data and research methods needed to empirically assess these welfare gains have only recently become available. Building on recently developed methodologies for estimating the elasticity of substitution and computing welfare gains from trade, we estimate Japan's welfare gains from liberalizing trade in the manufacturing sector. To do so, we estimate the elasticities of substitution using Japanese customs data at Harmonized System (HS) 9-digit product codes. The analysis shows that Japan's welfare gains from trade liberalization occurred especially from the end of the 1990s onward, and reached 16 percent vis-à-vis the autarky situation.
KW - Japan
KW - Trade liberalization
KW - Welfare gains
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U2 - 10.1016/j.jjie.2022.101193
DO - 10.1016/j.jjie.2022.101193
M3 - Article
AN - SCOPUS:85124559281
VL - 64
JO - Journal of the Japanese and International Economies
JF - Journal of the Japanese and International Economies
SN - 0889-1583
M1 - 101193
ER -