International fragmentation of production and foreign trade of Japan
International fragmentation of production and foreign trade of Japan

Summary/Abstract: The article analyses the process of international fragmentation of production and its implications for foreign trade of Japan after 1995. Using a new method of measuring trade, based on the concept of value-added, selected changes in the foreign trade of the country were presented. The author showed that the share of Japan in the international fragmentation of production, although growing, is small. From the point of view of the balance of trade, Japan showed a tendency to increase the trade surplus in the field of labour-intensive products and the decline in terms of capital-intensive goods. In addition, the value-added method allowed us to assess the comparative advantage of Japan. After taking into account fragmentation, RCA indicators for the country are more favourable, which means that revealed comparative advantage of Japan is higher.

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