The degree of penetration of imported products in the domestic market illustrates a rise in the value added to imported products. In the 1990s, the growth in penetration of textile goods was conspicuous, but since 2000 it has leveled off at around 30 percent. The penetration of electrical and general machinery has increased to nearly 30 percent very recently, from 17-18 percent in 2000.
These changes reflect progress in industrialization and the accumulation of technology in East Asian economies since 1990. They are also attributable to Japanese firms’ activities to transfer production sites overseas. At the same time, these changes make us consider what kinds of industries we should nurture and what types of economic value we can create as sources of Japan’s future growth. B.