Interaction Between Trade, Conflict And Cooperation: The Case Of Japan And China
AbstractThe complex interaction between trade and politics is analysed for the Japan-China relationship using Granger causality tests. The purpose is to determine the presence and direction of causation between trade and political events, both positive and negative, and to gauge an idea of the lag length of causality. Trade is growing quickly between Japan and China despite long standing political distance between the two countries. Results show that the economic relationship underpins and constrains the political relationship between Japan and China while an increase in positive political news and a decrease in negative political news promote trade to some degree.
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Bibliographic InfoPaper provided by Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University in its series Asia Pacific Economic Papers with number 386.
Length: 39 pages
Date of creation: 2010
Date of revision:
Other versions of this item:
- Shiro Armstrong, 2010. "Interaction between trade, conflict and cooperation : the case of Japan and China," Trade Working Papers 22766, East Asian Bureau of Economic Research.
- C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
- F10 - International Economics - - Trade - - - General
- F59 - International Economics - - International Relations, National Security, and International Political Economy - - - Other
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-08-21 (All new papers)
- NEP-INT-2010-08-21 (International Trade)
- NEP-POL-2010-08-21 (Positive Political Economics)
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