Japan-China Trade for Recycled Resources and Japanese Recycling Industries.

Abstract

In recent years, Japan-China trade for recycled resources have increased rapidly. It is likely that China's economic expansion causes the outflow of recycled resources from Japan to China, which leads Japanese recycling industries to shrink. The purpose of this paper is to evaluate the impact of China's economic expansion on Japanese recycling industries by using a Japan-China Applied General Equilibrium (AGE) model. The results of the evaluation suggest that whether Japanese recycling industries shrink or not depends on patterns of China's economic expansion. In particular, Change in production costs of natural resource intensive industries in China, which is caused in the economic expansion process, affects Japanese recycling industries through Japan-China trade for recycled resources.