Research On Industry Transfer Of Japan In Asia

Since the middle of the last century, international industry transfer has becomean important factor of the "East Asian miracle", so that the East Asian economy hasbecome an important pole in the world economy. Actually, Industry transfer of theEast Asian region went along with Japan's scrap-and-build industrial restructuring.Industry transfer of Japan to NIES, ASEAN, China and other East Asian countriesmade they integrate into the large regional division of labor. East Asia has becomeone of the most active areas of this economic activity. No matter neither"flying geesepattern"nor regional production networks pattern, industry transfer has always beenthroughout the Asia's economic development, so it shows both ancient and ever newcharm. The article analyzes the problem combined with the new phenomenon, newperspective and relevant theory. It trys to abstract the nature of industry transfer ofJapan in Asian which has both theoretical and practical significance.The dissertation contains eight chapters.Chapter 1 is introduction. In this chapter, it elaborates the back background ofthe topic, theoretical and practical significance, reviews related literature, clarifies thestructure arrangement, and gives research method, the innovation and shortness.Chapter 2 is the basic issues of international industry transfer and relevanteconomic theory. The basic issues include the way, classification and utility ofindustry transfer. At present, the international industry transfer mainly goes under theway of international trade and investment. The former is showed by one countryreducing or even stopping to product certain industrial production, then meetingdomestic demand by the way of import. The latter is expressed to establish productionbase in foreign countries by the way of direct investment, arrange production in thosecountries, and import the final production or export it to the other contries directly.The article classifies industry transfer to transfer the marginal industry as a whole, marginal sectors of the marginal industry, low-end and high-end link in the industryvalue chain under the global task division. Analysis shows that it will increase utilityin the mode of specialization of industry transfer than in the closed condition. Theinfrastructure, R&D level, market maturity, human resources as well as cost are thefactors of attracting industry transfer. Finally, this chapter reviewed the economictheory and the development process of these theories.Chapter 3 is the industrial development and industry transfer evolution of Japan.After the world warâ…¡, Japan reconstructed and adjusted the industrial structure forthree times. After the later half of 1940s, the government began to support the basicindustry. And established some heavy and chemical industries as the leadingindustries in the mid-1950s to the 1960s. At the same time, the rising of emergingindustries such as electronics and automotive changed the industrial structure to lightindustrial. In this process, Japan's transfering its marginal industries to overseasoffered the resource and space for emerging industries, and it made Japan achieve theindustrial upgrading and economic development.Chapter 4 is the theoretical and practical dynamic mechanism of Japan's industrytransfer. Patial flow of factors, product life cycle, innovation and technologicalprogress, market as well as the industry life cycle is the theoretical support of Japan'sindustry transfer. It also be promoted by a series of macroeconomic factors. Firstly,Japan's economic growth constrained by the constraints of the natural and socialresources; secondly, fierce competition made it adjust the industrial structure andenhance industrial competitiveness; thridly, industrial development is guided by themarket demand, while market expansion is the way of enterprises to participate in thecompetition and profitability is the relentless pursuit of enterprises. Forthly, externaldiseconomy made the economy and the environment can't develop harmoniously.Fifthly, finance, tax and insurance system and the legal provided a solid backing andprotection for japan's industry transfer. As the executor of policies and businessactivities, Japanese multinational companies and SMEs become the main body offoreign investment and the carrier of industry transfer.Chapter 5 is the location selection of Japan's industry transfer in Asia. Japan transfered certain industries to Asia stems from its dependence on Asian economies,while the different motives decided the different distriction. Japan had a certainstrategic thinking on the location selection of industry transfer and it was alwayssubject to the requirements of its global production strategy. At the same time,location selection is effected by the factors of production cost, market, the level oftechnology and policy of host countries. It also affected by the strategies of othercountries and the international economic environment. The current industry transferof Japan in Asia mainly concentrated in NIES, ASEAN and China, but it shows thecharacteristics of non-equilibrium distribution in NIES and ASEAN. Now branchoffices of Japanese enterprise are concentrating in Asia. The number and proportionare both greater compared to other continents. More and more enterprises select chinaas their production base in Asia.Chemical industry, transportation, electricalmachinery, general machinery, steel and metal industry are the main industries forjapan to transfer to Asia. With the economic development of India, economic andtrade exchanges become closer than before between Japan and India. And eventhough India has the problem of poor infrastructure, imbalance of human resourcestructure and industrial structure and policy-making difficulties, it also attracted japanto transfer industries for its huge market and other comparative advantages.Chapter 6 is the effect of japan's industry transfer in Asian. Industry transferbrought a positive effect of economic growth and a negative effect of Industrialhollowing for Japan. Empirical analysis reveals that it brings Trade Creation Effect totransfer industries to China. It increases the import of intermediate goods from Japanto China and export of final goods from China to world market. Japan transferedcertain industries to China enhance the Industrial Linkages of the host country.Empirical analysis shows that Japan'investing in ASEAN brought the Crowding OutEffect of intra-ASEAN investment. It effected the growth and development ofnational enterprise and industry of ASEAN.Chapter 7 is the status of China in the strategy of Japan's industry transfer inAsian. It found that China, ASEAN and India all have different competitiveadvantages in terms of investment attraction, income and risk. They compete focusing on the industry, costs, policy and the importace on Japan's foreign economicdevelopment strategy. Japan's industry transfer to China tied trade relationship moreclosely between Japan and China, but it also expanded the trade imbalance betweenthe two. The trade intensity of other countries with China rises, while with Japandeclined. Industrial Hollowing of Japan can not be attributed completely to transferindustry to China. The upgrading status of China in East Asia weakens that of Japan.It also stimulates Japan to expand economic cooperation with other Asian countries tobalance China. Meanwhile, the developed countries including Japan's transferingindustries to China expanded the trade imbalance between China and the world.Chapter 8 is conclusion.