Yamashita (La Trobe U., Australia) empirically analyzes the patterns, determinants, and labor market implications of international fragmentation of production--the cross-border splitting of the
production process within vertically integrated manufacturing industries--focusing on the Japanese experience while also considering how it compares with the US experience. The analysis
examines patterns and determinants of cross-border trade in parts and components by using trade data compiled on the basis of a new commodity list of part and components of manufacturing trade
over the period 1988-2005, the effects of fragmentation trade on the skills structure of manufacturing employment in Japan using a panel data set for 52 Japanese manufacturing industries over
the period 1980-2000, and the implications for production fragmentation for employment in the home country operations of Japanese multinational manufacturers using firm-level business structure
and activity surveys conducted by the Japanese Ministry of Economy, Trade and Industry for the period 1991-2002. He finds that unit labor costs and transportation costs are more important
determinants of fragmentation for Japan then for the US and that fragmentation has brought about a shift in favor of skilled workers but has had little negative impact on overall employment in
Japan. Annotation 穢2011 Book News, Inc., Portland, OR (booknews.com)
