The Impacts of Bilateral Value Chains Between Japan and Korea on Value-Added Creation of Manufacturing Firms
Abstract
This paper investigates bilateral value-chain participation between Japan and Korea and its association with firm-level value-added. Using firm-level data for both Japanese and Korean manufacturing firms over the period 2006–2014, we find that firms in both countries operating in industries with stronger backward bilateral value-chain linkages of Korea with Japan—or equivalently, forward linkages of Japan with Korea—tend to exhibit higher real value-added, while the opposite direction of participation is associated with lower value-added. These patterns are broadly observed across major manufacturing industries, with the automobile industry exhibiting distinct behavior.
Fields of Study & Subjects
Global trade and economics
Global trade
sustainability
and social impact
International Business and FDI
Publication details
- Journal / source
- International Economic Journal
- Volume
- 40
- Issue
- 1
- Pages
- 180–207
- Publication date
- 2 January 2026
- Language
- EN