This paper investigates the scale of direct and indirect services trade, or services content, in Japanese trade between 1985 and 1995 using data from Japanese input-output tables. The empirical analysis revealed that the services content reflected the characteristics of the Japanese economy. The scale of research and development (R&D) services in total services trade has been much higher throughout the period than has the scale of other services. The R&D services content of Japanese merchandise exports amounted to US$ 27.0 billion in 1995, 84.3 percent of which was channeled through machinery exports. The R&D services content of Japanese machinery exports toward East and Southeast Asia grew rapidly, especially toward ASEAN countries. Our results confirm the importance of the traded-related international R&D spillovers.
ASJC Scopus subject areas
- Economics and Econometrics
- Political Science and International Relations