Services in International Trade of Japan : Factors Influence on the Share

This study examines possible factors influencing on the share of services in international trade of Japan. Until China overtook in 2004, Japan had stayed as the leading Asian exporter. Together with the United States and Germany, Japan was one of the major exporter of value added in final demand for many countries around the world. While the most of major OECD countries were carrying on economic growth through the export expansions for the past ten years, the proportion of exports to Japan’s GDP and its growth in the percentage are low, especially in relation to services trade. Therefore, this research pays attention to the periodical changes of services in international trade of Japan in order to determine the factors. To build a theoretical framework, qualitative method is used based on the literature review within the frame of reference to services and perspective of international trade. With respect, the perception and perspectives of different critics were reviewed and analyzed during that data collection in different languages: Japanese, Chinese, English, and Korean. The factors influenced on the shares of services in international trade of Japan are determined through the analysis and they are: technological development, direct foreign investment, liberalization of trade, agreements with neighboring and foreign countries, and natural disaster.