Mutual Gains or Exclusive Contests?
The Strategic Calculus of Japanese Firms on China’s CPTPP Bid
In: Law & GeoeconomicsSearch for other papers by Jialu Li in
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Search for other papers by Sayumi Miyano in
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Abstract
Firms today must assess the impact of new trade policies within a complex global business landscape shaped by expanding global value chains and geopolitical risks. How do they respond to new trade policies under discussion? We argue that firms take informational cues from other firms in the same industry and along their supply chains. We test this through a survey experiment with Japanese firm managers, examining their reactions to China’s potential entry into the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership. Our findings show that positive views from large co-industry firms and supply chain partners lead to negative assessments by managers, not only among small firms but also among large exporting firms, driven by fears of rising domestic competition. Concerns also extend to the broader national economic impact. The study contributes to our understanding of the micro-foundations of trade politics, highlighting firm heterogeneity in their response to multifaceted trade policies.
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Supplementary Materials
| All Time | Past 365 days | Past 30 Days | |
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Mutual Gains or Exclusive Contests?
The Strategic Calculus of Japanese Firms on China’s CPTPP Bid
In: Law & GeoeconomicsSearch for other papers by Jialu Li in
Current site
Google Scholar
PubMed
Search for other papers by Sayumi Miyano in
Current site
Google Scholar
PubMed
Abstract
Firms today must assess the impact of new trade policies within a complex global business landscape shaped by expanding global value chains and geopolitical risks. How do they respond to new trade policies under discussion? We argue that firms take informational cues from other firms in the same industry and along their supply chains. We test this through a survey experiment with Japanese firm managers, examining their reactions to China’s potential entry into the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership. Our findings show that positive views from large co-industry firms and supply chain partners lead to negative assessments by managers, not only among small firms but also among large exporting firms, driven by fears of rising domestic competition. Concerns also extend to the broader national economic impact. The study contributes to our understanding of the micro-foundations of trade politics, highlighting firm heterogeneity in their response to multifaceted trade policies.
| All Time | Past 365 days | Past 30 Days | |
|---|---|---|---|
| Abstract Views | 177 | 177 | 64 |
| Full Text Views | 5 | 5 | 4 |
| PDF Views & Downloads | 11 | 11 | 5 |
