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        Do Japan’s Free Trade Agreements Increase Its International Trade?

        Mitsuyo Ando,Shujiro Urata,Kenta Yamanouchi 세종대학교 경제통합연구소 2022 Journal of Economic Integration Vol.37 No.1

        This study analyzes the impacts of free trade agreements (FTAs) on bilateral trade, focusing on Japan’s FTAs. In particular, we examined both static and dynamic effects at the aggregated and disaggregated levels, using two datasets between 1995 and 2016 for Japanese trade only and world trade. For the static analysis, we investigated the overall impacts and the effect of individual FTAs. Regarding dynamic analysis, we considered the time since their enactment. Our results indicate that the impacts are heterogeneous among Japan’s FTAs and products, with a trade creation effect for some FTA partners. Moreover, our findings reveal that the trade creation effect is probably overestimated when trade between the third countries is not considered. We also found a positive dynamic effect for some products. Such a dynamic effect may emerge due to a longer time for firms to understand FTAs and learn their use and the gradual tariff reduction for some products.

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        Production Linkage of Asia and Europe via Central and Eastern Europe

        ( Mitsuyo Ando ),( Fukunari Kimura ) 세종대학교 경제통합연구소(구 세종대학교 국제경제연구소) 2013 Journal of Economic Integration Vol.28 No.2

        This paper investigates the novel development of machinery trade pattern in the Central and Eastern Europe (CEE) and analyzes the extent and depth of production networks in Europe from the perspective of their links with East Asia during the past 15 years, 1995~2010. Our descriptive analysis based on the total value of trade and the extensive margin demonstrates further production fragmentation in Europe, shifting from Western Europe (CEE production sharing to a regional network with more active transactions among CEE countries) to a global link with East Asia via CEE, particularly in the electric machinery sector. Our quantitative analysis verifies the evolution of production networks in Europe, from regional to global. These results partially reflect the reduction in services link costs, the evolution of industrial clustering among CEE countries particularly after the EU enlargement, and the strengthening competence of production networks in East Asia.

      • KCI등재

        Machinery Trade in East Asia and the Global Financial Crisis

        Mitsuyo Ando 한국경제연구학회 2010 Korea and the World Economy Vol.11 No.2

        This paper highlights international production/distribution networks in East Asia and attempts to examine patterns of machinery trade movements under the global financial crisis to explore how and to what extent it has affected trade. More specifically, the paper analyzes these trade patterns, with distinctions between machinery intermediate goods and final products, among trading partners, between intra-regional and inter-regional trade, and among machinery sectors. Our results demonstrate that effects of the global financial crisis on international production/distribution networks in East Asia do indeed exist but, at the same time, East Asia’s trade has rapidly recovered through the regional production/distribution networks. In particular, East Asia itself is the major contributor to such a rapid recovery, not only for machinery parts and components trade but also for machinery final goods trade. This suggests that the existence of dense production/distribution networks in East Asia helps industries to avoid becoming destabilized. It also suggests that East Asia is increasingly gaining importance not only as the production site but also as the consumption site for final products that are produced in the production/distribution networks in the region, implying that activation and expansion of intra-regional demand are essential.

      • KCI등재

        The Impacts of East Asia FTA: A CGE Model Simulation Study

        Mitsuyo Ando,Shujiro Urata 대외경제정책연구원 2007 East Asian Economic Review Vol.11 No.2

        In light of the on-going discussions of the possibility of an East Asia FTA, this paper attempts to estimate the impacts of an East Asia FTA using a Computable General Equilibrium (CGE) model. Although most previous simulation studies on the impacts of FTAs focus only on the liberalization of trade in goods, our paper attempts to take into account other aspects of FTAs such as capital accumulation and trade and investment facilitation measures. Our simulation analysis finds that an ASEAN+3 FTA is the most desirable FTA of eight hypothetical FTAs in East Asia to all member countries at the macro level. At the same time, our results demonstrate the significant impacts of capital accumulation and various trade and investment facilitation and coordination programs. At the sectoral level, many sectors gain in terms of output and trade. Although some sectors in certain countries indeed lose in terms of output as a result of an ASEAN+3, most of them experience increases in both exports and imports, even if output declines. These results indicate that the larger the coverage in terms of membership as well as contents such as trade and FDI liberalization and facilitation, and economic cooperation is, the greater benefits can be accrued to the members.

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