ABSTRACT
The findings of many previous studies suggest that globalisation to some extent create winners and losers amongst firms and workers. However, previous studies also show that the magnitude of the impact that is directly attributable to globalisation is quite limited. Although the empirical evidence on Japan is more or less consistent with that on other developed countries, noteworthy observations for Japan are as follows. First, several empirical studies confirm a learning-by-exporting effect as firms tend to improve their productivity after they start exporting. However, such a learning effect is not always found for other countries. Second, increases in imports from China do not always have a significant negative effect on employment and value-added growth in Japan, which contrasts with results for the United States (US) and some European countries. A possible interpretation of the results for Japan is that they reflect a complementary relationship between Japan and China in global supply chains. The findings for Japan suggest that both firms and governments should not take a negative approach towards globalisation. Rather, firms should invest in new technology and human capital to respond flexibly to the structural changes brought about by globalisation and technological change.
