Input-output analysis of the interdependence between Japan and China through Japanese overseas production

We reconstructed the 2007 Japan-China International Input-Output Table as one that extracts Japanese production activities from China, using microdata of about 3,600 establishments in the METI Statistics 'Survey of Overseas Business Activities.' The recompiled input-output table consists of Japan, China (minus Japanese subsidiaries), and Japanese subsidiary activities in China with 30 sectors for each. Using this table, we discuss two topics. One is the regional contribution of value-added and imports against a one-unit increase of final demand in the Japanese subsidiary sector. The other is a simulation analysis of the production shift from Japan to China.