rieti discussion paper series 04 e 002 physical and human capital deepening new trade patterns in japan prepared for the fourteenth annual east asian seminar on economics international september 5 7 2003 taipei keiko ito centre study of development kyoji fukao hitotsubashi university revised version november correspondence institute economic research naka 2 1 kunitachi tokyo 186 8603 tel 81 42 580 8359 fax 8333 mail k srv cc hit u ac jp authors would like to thank editors this volume discussants chin hee hahn ji chou participants nber their helpful comments are also grateful yoshimasa yoshiike tangjun yuan undertaking meticulous data calculations abstract investigates division labor its effect factor intensities mainly focusing manufacturing sector first half we analyze contents find that s content net exports non production