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Is Japan's trade (still) different?

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  • Harrigan, James
  • Vanjani, Rohit

Abstract

Does Japanese trade in manufactured goods differ from the rest-of-the world average and from the U.S.? We use a simple industry-level gravity model and 1981-1998 data to answer this question. We construct a measure of normalized imports by dividing bilateral industry-level imports by the importer's aggregate absorption and the exporter's industry output. We find that Japan imports less than other countries, but also exports less than other countries. Relative to the U.S., Japanese export performance is half as strong today as it was in the mid-1980s. Bilaterally, Japan's normalized imports from the U.S. are greater than U.S. normalized imports from Japan.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of the Japanese and International Economies.

Volume (Year): 17 (2003)
Issue (Month): 4 (December)
Pages: 507-519

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Handle: RePEc:eee:jjieco:v:17:y:2003:i:4:p:507-519

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Web page: http://www.elsevier.com/locate/inca/622903

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References

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  1. James Harrigan, 2001. "Specialization and the volume of trade: do the data obey the laws?," Staff Reports 140, Federal Reserve Bank of New York.
  2. Edward E. Leamer, 1988. "Measures of Openness," NBER Chapters, in: Trade Policy Issues and Empirical Analysis, pages 145-204 National Bureau of Economic Research, Inc.
  3. Saxonhouse, G.R., 1988. "Differentiated Products, Economies Of Scale And Access To The Japanese Market," Working Papers 228, Research Seminar in International Economics, University of Michigan.
  4. Harrigan, James, 1996. "Openness to trade in manufactures in the OECD," Journal of International Economics, Elsevier, vol. 40(1-2), pages 23-39, February.
  5. Jonathan Eaton & Samuel Kortum, 2002. "Technology, Geography, and Trade," Econometrica, Econometric Society, vol. 70(5), pages 1741-1779, September.
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Cited by:
  1. Lionel Fontagné & Thierry Mayer & Soledad Zignago, 2005. "Trade in the Triad: how easy is the access to large markets?," Canadian Journal of Economics, Canadian Economics Association, vol. 38(4), pages 1401-1430, November.
  2. Tiwari, Aviral & Shahbaz, Muhammad, 2011. "India's trade with USA and her trade balance: An empirical analysis," MPRA Paper 29023, University Library of Munich, Germany.
  3. Uttam Kumar Deb, 2006. "Rules of Origin and Non-Tariff Barriers in Agricultural Trade: Perspectives from Bangladesh and Cambodia," Working Papers 1206, Asia-Pacific Research and Training Network on Trade (ARTNeT), an initiative of UNESCAP and IDRC, Canada..
  4. Alessandro Olper & Valentina Raimondi, 2008. "Explaining National Border Effects in the QUAD Food Trade," Journal of Agricultural Economics, Wiley Blackwell, vol. 59(3), pages 436-462, 09.
  5. Yusuf, Shahid & Nabeshima, Kaoru, 2005. "Japan's changing industrial landscape," Policy Research Working Paper Series 3758, The World Bank.

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