Using micro-data of the Establishment and Enterprise Census, we compile new statistics on the employment of Japanese affiliates of foreign firms at the 3-digit industry level for the year 1996. We find that the existing official statistics severely underestimate inward FDI. Nevertheless, the...

This paper investigates the deepening of the international division of labor and its effect on factor intensities in Japan, mainly focusing on the manufacturing sector. In the first half of the paper, we analyze factor contents of trade and find that Japan's factor content net-exports of capital...

As economic integration in East Asia progresses, trade patterns within the region are displaying an ever-greater complexity: Though inter-industry trade still accounts for the majority, its share in overall trade is declining. Instead, intra-industry trade (IIT), which can be further divided...