Empirical research of impacts of intermediate foreign trade on employment

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The main results from this project can be summarized as follows.(a) Although previous studies often found no significant impacts of import competition on employment in the case of Japan, they depended on aggregated data. By using the originally constructed data concordance at the disaggregated four-digit level, we find that the impact of import competition is no longer negligible in Japanese manufacturing industries.(b) We combine the import-employment data concordance with gross job flow data. The impact of import penetration on employment in Japan can be found in the decreasing gross job creation rather in the increasing gross job destruction. This finding is consistent with previous results from France, but contrasts with U.S. results.(c) We disaggregate industries by the location within the country. The impact of import competition on employment tends to be minor in regions with rich regional supply of intermediate inputs and of specialized human capital. On the other hand, the positive impact of large regional absorption of final products declined in the recent decade.The import data of part and components, distinguished from final products, at disaggregated four-digit level of Japan's Census of Manufactures classifications, are available in the final report of this project.Although this project succeeded in revealing many new findings in the case of Japan, remained tasks for future work include the extensive use of newly collected data of component imports, econometric analyses of fragmentation and foreign outsourcing.