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date: 09 April 2020

Abstract and Keywords

This chapter examines the offshoring of Japanese small and medium enterprises (SMEs) using a unique data set that contains detailed information on offshoring. Section 1 begins by describing the data. Section 2 summarizes the offshoring characteristics of Japanese SMEs. Section 3 examines the determinants of offshoring, focusing on the choice between intrafirm and arm’s-length offshoring. Sections 4, 5, and 6 investigate the impact of offshoring on employment, skill upgrading, and productivity. Section 7 summarizes the results and concludes. Throughout the chapter, the results for Japanese SMEs are compared with the results for larger firms as evidenced in past studies.

Keywords: Japanese firms, SMEs, intrafirm offshoring, arm’s-length offshoring, employment, skill upgrading, productivity, outsourcing

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