Tagged: Japan

New publications from OECD, late April 2017

New OECD publications have been uploaded to the OECD iLibrary, a comprehensive digital repository of books, papers, and statistics from the Organisation for Economic Cooperation and Development (OECD). Titles recently added include:

These volumes and more are accessible from the OECD iLibrary by WTO staff and WTO Library patrons.

Preferential Trade Agreements between Asymmetric Countries

This paper examines differences in welfare implications between a free trade area (FTA) and a customs union (CU) for member countries differing in their market sizes. In a stylized three-country model of trade under oligopoly, we take into account the conditions that FTA members set external tariffs to induce their exporting firms to comply with Rules of Origin (ROO) within the trade bloc.

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Did China׳s rare earth export policies work?

Rare earth elements are a strategic non-renewable resource. China is the largest producer and exporter of rare earth products. However, China has failed in the past to attain pricing power and large profits in spite of its monopolistic status. Over the past decade, China has issued and readjusted a series of policies for rare earth elements. Did China׳s rare earth export policies work? To answer this question, we have conducted an empirical study using the Lerner index and BP neural network. The results indicate that (1) the market power and price sensitivity of China׳s rare earth products have increased dramatically, indicating that China׳s export policies have exerted significant effects, and (2) the differences and changes in the market power and price sensitivity in different policy periods and in different countries verify the validity of China׳s export restriction policies on rare earth products. Moreover, we suggest that for the sustainable improvement of pricing power, China׳s focus could shift from controlling exports to controlling production, such as carrying out mergers in the industry to form large rare earth producers.

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The financial crisis of 2008 not only started the Great Recession, but also set off fundamental changes in production processes, government fiscal practices, and housing. Technological progress has enabled firms to outsource and offshore parts of the production process, leading to a fragmentation of global value chains. We briefly discuss this “second unbundling,” global versus regional fragmentation and some of the consequences that became visible during the Great Recession’s trade collapse. We discuss the consequences for some local clusters, both from a theoretical and empirical perspective, and some consequences for government fiscal health and housing from an American perspective.

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World Trade Online 10-29-2014

Skills and changing comparative advantage: The case of Japan

Is the skill gap of net exports widening? This question is nontrivial for many industrial countries because, with the rapid growth of emerging countries, human capital is considered one of the most important sources of comparative advantage. Theoretically, however, the answer is not necessarily obvious because of changing comparative advantage. This paper attempts to answer this question by extending the analysis of Wolff (2003) and by focusing on one of the largest OECD countries, Japan, for the period 1980–2005. The results indicate that the answer to the above question may well be “no.” Although Japan is still a net exporter of skill-intensive goods, the skill gap of net exports has been narrowing since the mid-1990s, mainly as a result of the changes in the composition of trade. This implies that some OECD countries, including Japan, may have been losing their comparative advantage in skill-intensive goods in recent years.

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Bilateral Treaty Relations between Korea, China and Japan

Recognizing the importance of emerging Northeast Asian economies, this paper attempts to define strategies for trilateral economic integration of Korea, China and Japan in regard to their international treaty practices. An overview of the bilateral treaties between aforementioned states evinces that such treaties, economic or non-economic, have contributed to the progress of the regional integration both directly and indirectly.

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