The Effect of Exchange Rate Changes on Japanese Consumption Exports
AbstractThis paper investigates how exchange rates affect Japanese exports. This is difficult because many of Japanâ€™s exports are used to produce goods for re-export. An appreciation in the importing country that decreases exports can decrease its imported inputs from Japan. To correct for this bias we examine consumption exports. Using a panel dataset of Japanâ€™s consumption exports to 17 countries over the 1988â€“2009 period, we find that a 10% appreciation of the yen would reduce Japanâ€™s consumption goods exports by 9%. These results indicate that the large swings in the value of the yen over the last decade have caused large swings in the volume of Japanese exports
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Bibliographic InfoPaper provided by East Asian Bureau of Economic Research in its series Macroeconomics Working Papers with number 23238.
Date of creation: Jul 2011
Date of revision:
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exchange rates; Japanese exports; effects of the exchange rate; Japan; trade;
Other versions of this item:
- Thorbecke, Willem & Kato, Atsuyuki, 2011. "The Effect of Exchange Rate Changes on Japanese Consumption Exports," ADBI Working Papers, Asian Development Bank Institute 298, Asian Development Bank Institute.
- Willem Thorbecke & Atsuyuki Kato, 2011. "The Effect of Exchange Rate Changes on Japanese Consumption Exports," Trade Working Papers, East Asian Bureau of Economic Research 23238, East Asian Bureau of Economic Research.
- F30 - International Economics - - International Finance - - - General
- F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
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