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Has Japan Been 'Opening-Up?': Empirical Analytics of Trade Patterns

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  • Jayant Menon

Abstract

The US–Japan trade dispute has been widely reported. It continues to threaten the stability of the world trading order because the United States alleges that the Japanese market remains ‘closed’ to its exports. The Clinton administration has made it clear that it will judge the openness of the Japanese market by results. In light of this, this paper examines how the pattern of Japan’s total multilateral trade and trade with the United States has changed between 1981 and 1991. It finds that between 1986 and 1991, more than half of the growth in Japan’s total multilateral trade, and all of the growth in trade with the United States, was a result of intraindustry trade growth. The paper also finds that most of the growth in intra-industry trade is a result of import growth in net export industries. This is the type of trade that the United States has been urging Japan to increase and is consistent with an opening-up of the Japanese market.

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File URL: https://crawford.anu.edu.au/pdf/pep/pep-263.pdf
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Bibliographic Info

Paper provided by Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University in its series Asia Pacific Economic Papers with number 263.

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Length: 30 pages
Date of creation: Jan 1997
Date of revision:
Handle: RePEc:csg:ajrcau:263

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  1. Saxonhouse, G.R., 1993. "What Does Japanese Trade Structure Tell Us about Japanese Trade Policy?," Working Papers 337, Research Seminar in International Economics, University of Michigan.
  2. Prema-chandra Athukorala & Jayant Menon, 1992. "Pricing to Market Behaviour and Exchange Rate Pass-Through in Japanese Exports," Working Papers 1992.32 EDIRC Provider-In, School of Economics, La Trobe University.
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