Kaoru Nabeshima

The impacts of export competition on international technology flows

ABSTRACT Knowledge flow is a key to building technological capabilities. This article investigates how competition in international trade affects knowledge flow between countries using patent data and trade data for analysis. The main finding is that export competition in the third market (in our study, the US market) seems to have a positive impact on the flow of knowledge. The findings from this study contribute to the debate on ‘learning-by-exporting’.

Preliminary Theoretical Model for Standard Promotion from the Perspective of Governments

This chapter presents a theoretical model of how private standards diffuse from one country to another country and examines the policy options available for domestic governments. The motivation behind the eagerness by foreign governments to incorporate foreign private standards in their public policies appears to stem from the desire to increase exports. The underlying assumption is that if standards and regulations are harmonized with major importing countries, then their exports will increase. This chapter explores the impact of different modes of incorporating of private standards into the domestic economy through public policy. Using the Krugmans monopolistic competition model, it shows how these different modes of incorporation impact on firms of different types.

A Snapshot of the Effects of Product-Related Environmental Regulations on Firms in Vietnam, Malaysia, and Japan

This chapter introduces the three firm-level surveys of the impact of PRERs on firms—in Vietnam, Malaysia, and Japan—that are used in subsequent chapters. It provides an overview of the surveys conducted in the region, setting out the key research questions and explaining their significance in the context of the volume as a whole, and it describes the databases from which the firms were sampled and the number of firms that responded to the questionnaires. The results of the surveys are presented. These show that firms facing tougher requirements for product quality from their customers worked intensively to comply with regulations, while firms that have not faced such requirements or not had their products rejected by customers tend to overlook the needs to upgrade their capability. The survey also reveals that firms adapt to chemicals regulation for their sourcing of materials according to the strictness of regulations in differing export markets. This may lead to a situation where higher safety standards are applied to goods exported to regulated markets and lower ones for goods targeted less regulated markets.

Introduction: New Sustainability Challenges for East Asia

Michida, Humphrey and Nabeshima summarize the main ideas in the collection and the contribution of each of the papers. Focusing specifically on food safety standards and product-related environmental regulations (PRERs) adopted in the EU, they argue that these regulations and standards have increased in stringency and have extended the use of the preventive controls. Such controls create challenges for both governments and businesses in Asian countries. If these challenges are not addressed, the regulations may act as barriers to trade. The chapter identifies how the different chapters in the book contribute to analyzing the responses of both regulatory authorities and businesses in developing Asia to these challenges.

Diffusion of Private Food Standards from the European Union to Asia

Michida and Nabeshima examine the diffusion of standards for good agricultural practices (GAPs) in the Asian region. They emphasize that Asian governments view GAPs as important for maintaining access to export markets, improving farming practices and facilitating intra-regional trade through standards harmonization. Despite these common motivations, responses across the region were remarkably heterogeneous. They identify four different responses based on whether public or private actors played the main role and how closely the standards created in the region followed the principles adopted in the EU. Most of the GAP standards in Asia are too dissimilar from the standards in the EU. They suggest that ad hoc adaption of foreign private standards may lead to mismatch with a country’s philosophy, needs and industrial structure.

Transmission Channels of Requirements for Chemicals in Products to Firms in Vietnam

Importing countries and buyers have introduced strict regulations regarding chemical substances contained in products. Manufacturing firms are forced to monitor the presence of chemicals in products through their supply chains. However, it is difficult for firms in developing countries to acquire updated information on the regulations and comply with them. How do firms acquire the necessary knowledge and technologies to overcome the obstacles for accessing external markets? This study investigates the transmission channels of information on chemicals in product to firms in Vietnam. It is based on data from a survey of 1055 firms in Vietnam. This chapter suggests global value chains (GVCs) play important roles in enabling export firms, both direct and indirect exporters, to acquire regulatory information and achieve compliance.