In most economies, around one-third of intermediate imports are destined for the export market. Typically, the smaller the economy the higher the share, but even in the United States and Japan these shares are 15 per cent and 20 per cent respectively, at the total economy level with a higher incidence of intermediate imports in some highly integrated industries (Figure 3.6). In Japan, for example, nearly 40 per cent of all intermediate imports of transport equipment end up in exports.
In