Trade and Investment between Japan and China under Globalization |

Trade and Investment between Japan and China under Globalization


The importance of the Japanese economy in the world has declined dramatically since 1990s. Her share of world GDP has declined from 17.9 percent in 1994 to 8.1 percent in 2008 while China has surpassed Italy, France, UK and Germany in the recent years and become the third largest economy. If the trend continues, it is estimated that in 2010 China will become the second largest economy which Japan has maintained since 1972.

This paper reviews trade development between Japan and China and identifies investment opportunities under globalization. Trade data at different level of SITC classification were collected to compute their indexes of comparative advantage, international competitiveness coefficient and intra-industry trade. The three related indexes combined can be used to provide better information on current trade development, trade pattern prediction and investment implications. The most important sector for Japanese exports, Machinery and Transport Equipment (SITC 7), were used to illustrate the relocation, reconfiguration and investment process.

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Mike Leu, Professor, School of International Management, Ritsumeikan Asia Pacific University, Japan

Monday, 22 March 2010
12.15 p.m. - 1.30 p.m.

Seminar Room 3-5
Level 3, Manasseh Meyer
Lee Kuan Yew School of Public Policy
469C Bukit Timah Road
Singapore 259772

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