How did the Japanese Exports Respond to Two Crises in the International Production Networks? The Global Financial Crisis and the Great East Japan Earthquake

This paper analyzes the impact of two massive shocks on J apanese exports, the 2008–2009 G lobal F inancial C risis and the 2011 G reat E ast J apan E arthquake, focusing on the characteristics of domestic/international production networks in machinery industries. Using monthly data for J apanese bilateral exports at the most disaggregated level, the paper decomposes the fall and recovery of J apanese exports into intensive and extensive margins. It also examines the exit and re‐entry of exports using logit estimation and survival analysis. The experience after both shocks confirms the stability and robustness of production networks and the enhancing link with E ast A sia. However, differences between the two shocks seem to generate differential impacts on corporate behavior.