The unprecedented development of production networks in East Asia has been investigated, both theoretically and empirically, employing the conceptual framework of fragmentation theory and its extensions. However, the benefits of production fragmentation at the firm level, particularly benefits...

In this paper, we investigate the dynamic nature of trading using Japanese firm-level data. Specifically, we examine state dependence and cross effects in exporting and importing. Our findings are as follows. First, we found significant state dependence and cross effects in exporting and...

This paper attempts to clarify the reasons for the rapid growth of FDI in developing countries, particularly East Asian countries, compared with that of FDI in developed countries. To do this, we will examine the mechanics of HFDI and VFDI, in order to shed light on the role of trade costs. Our...

This paper explores the location choice of MNEs in China, shedding special light on the role of agglomeration of same-nationality firms. In particular, we examine how its role differs according to investors’ productivity. Furthermore, we compare the location choice of Japanese and Taiwanese...

This paper empirically decomposes trade creation effects of regional trade agreements (RTAs) into those due to the tariff reduction effects and due to non-tariff barrier (NTB) removal by using the most disaggregated tariff-line level trade data in a large number of countries in the world....

This paper provides the first empirical evidence about the tariff passthrough in world-wide trade. Specifically, we estimate the effects of tariff reduction on import prices for our tariff line-level data in 46 importing countries in 2007- 2011. The estimation results show that the average...