This paper aims to illustrate and show viewpoints for strength of correlation relationships between international personal exchanges and economic activities from the viewpoint of social networks and transaction cost economics, focusing on knowledge workers engaging in specialty occupation and international transactions in goods and services, between Japan and 57th countries for 7 years, before the COVID-19 pandemic. And through this empirical study, we intend to show that international personal exchanges among knowledge workers contributes to the development of international trading.
We assume that social capital formed by the network of exchanges among knowledge workers who propagate knowledge across borders, contributes to the development of international economic transactions by reducing uncertainty and transaction costs in cross-border transactions. And based on the remaining issues raised in previous studies, we conduct a verification focusing on Japanese expatriates in overseas and foreign residents in Japan with specific residency status as well as on the amount of value-added trade in goods and services.
This quantitative survey mainly discusses the relationships with international personal exchanges among knowledge workers and value-added creation in economic transactions, and suggests that the degree of contribution of personal exchanges is particularly large in trade with advanced industrialized countries that are economically similar to Japan. And results of this empirical analysis suggest that the importance of simultaneously examining not only the availability of trade resources, but also the heterogeneity of economic scale, industrial structure, trade structure and form, and other characteristics of each country.
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