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Global Supply Chain and Japanese Electronics Firms’ Location in East Asia: A Case of Final Goods Production Sites

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Applied Analysis of Growth, Trade, and Public Policy

Abstract

Japanese companies in the global-type electrical/electronics industry continued to locate in ASEAN and other countries instead of China from the 1990s up until 2009, but the proportion located in ASEAN and other countries declined so that the number of locations in China and in ASEAN and other countries was about equal as of 2009. Although this sector’s expansion proceeded at about the same rate in both China and ASEAN and other countries, the number of locations in China has grown rapidly since the mid-2000s.

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Notes

  1. 1.

    In this paper, the global-type electrical/electronics industry refers to the manufacture of electronic parts, devices and electronic circuits per JSIC Code 28, the manufacture of electrical machinery, equipment and supplies per JSIC Code 29, and the manufacture of information and communication electronics equipment per JSIC Code 30.

  2. 2.

    In addition to Venables (1996) employing the NEG model, Fujita and Hamaguchi (2001, 2014), Todo et al. (2015), and other papers have analyzed the supply chain and knowledge dissemination.

  3. 3.

    See Tokunaga, Akune, Ikegawa, and Okiyama (2015, Fig. 6) for this point.

  4. 4.

    We eliminated those firms whose entry date was unknown.

  5. 5.

    Tokunaga and Ishii (2000), Tokunaga and Jin (2011), and Tokunaga et al. (2018) demonstrated that the agglomeration variable is a key explanatory variable in overseas location choice because economies of agglomeration are at work, but this paper is the first to demonstrate the vertical and horizontal coagglomeration effect on location by separating production sites into those for final goods and those for intermediate goods for the electrical/electronics and automotive industries. Yamashita et al. (2014) demonstrated the importance of the agglomeration effect in Japanese MNFs’ location choices in China.

  6. 6.

    See Ikegawa, Tan, and Tokunaga, Chugoku Dairen ni okeru nikkei shokuhin, denki denshi, jidosha kanren kigyo oyobi JETRO Dairen jimusho no genchi chosa (2013, Nov.), [On-site survey of Japanese food, electrical/electronics, and automotive-related companies in Dalian, China, and JETRO’s Dalian office (Nov. 2013)], (Ikegawa and Tokunaga 2018).

  7. 7.

    This paper is the first to conduct an empirical analysis of the market potential (market access) and supplier access variables involved in choosing locations for the final goods production sites in the electrical/electronics by clearly differentiating between period 1995–2000 and period 2001–2009 and looking at domestic and neighboring countries’ markets separately. Tokunaga et al. (2018) and Ikegawa and Tokunaga (2018) have studied for Japanese MNFs using the same methodology.

  8. 8.

    Regarding this point, see Fujita and Thisse (2013), Chap. 9.

  9. 9.

    Regarding this point, see Fujita and Thisse (2013, p. 335).

  10. 10.

    Fujita and Thisse (2013, Chap. 8) used a simple NEG model to show that a region experiences coagglomeration of the intermediate goods sector and the final goods sector when the transportation costs for intermediate goods exceed the transportation costs for final goods in that region.

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Tokunaga, S., Ikegawa, M. (2018). Global Supply Chain and Japanese Electronics Firms’ Location in East Asia: A Case of Final Goods Production Sites. In: Hosoe, M., Kim, I., Yabuta, M., Lee, W. (eds) Applied Analysis of Growth, Trade, and Public Policy. Springer, Singapore. https://doi.org/10.1007/978-981-13-1876-4_7

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  • DOI: https://doi.org/10.1007/978-981-13-1876-4_7

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