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Research Staff Report

The benefits of yen depreciation fading for Japanese industries

— The nuclear power plant shutdown and offshore production shift in the background —

  Lead Economist
Katsuaki OCHIAI
  Specially Appointed Fellow
  Principal Economist


The impact of the yen’s depreciation against the dollar on each industry is estimated using the Input-Output tables for 2000, 2005, and 2015.
A rise in export prices leads to an increase in sales while the rise in import prices spills over to domestic prices and increase costs. If we do not consider changes in demand due to price fluctuations, the merit of the weaker yen has faded since 2000. The net positive effects on the processing industry has been gradually decreasing. The effects on material industry and non-manufacturing industry are negative and the margins have widened through 2015.

Figure of benefits and costs of 10% depreciation of the yen