Impact of Japanese enterprises’ expansion and withdrawal on Southeast Asia and Japan: an analysis using OECD inter-country input–output tables

Abstract According to the “48th Basic Survey on Overseas Business Activities” by Japan’s Ministry of Economy, Trade, and Industry, there were 25,034 local subsidiaries of Japanese enterprises overseas at the end of 2017, with 10,838 in manufacturing and 14,196 in non-manufacturing sectors. The number of Japanese enterprises operating in Southeast Asia has continued to increase, and the status of Japanese enterprises’ expansion in Southeast Asia differs between countries. In this study, we use data from Japanese enterprises in the “2018 Directory of Japanese Enterprises Expanding Overseas by country” and the OECD (Organisation for Economic Co-operation and Development) inter-country input–output (ICIO) tables to reconstruct the ICIO tables, distinguishing between Japanese and non-Japanese enterprises. We examine the variation in the presence of Japanese enterprises across six Southeast Asian countries by industry, explore the differences in their connections with Japan, and analyze how the effects of new entries and exits of Japanese enterprises in 2017 vary.