Interaction between trade, conflict and cooperation : the case of Japan and China
AbstractThe complex interaction between trade and politics is analysed for the JapanChina 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 East Asian Bureau of Economic Research in its series Trade Working Papers with number 22766.
Date of creation: Jan 2010
Date of revision:
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Postal: JG Crawford Building #13, Asia Pacific School of Economics and Government, Australian National University, ACT 0200
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Conflict and Cooperation; trade; Granger Causality;
Other versions of this item:
- Shoro Armstrong, 2010. "Interaction Between Trade, Conflict And Cooperation: The Case Of Japan And China," Asia Pacific Economic Papers 386, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
- C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models
- F10 - International Economics - - Trade - - - General
- F59 - International Economics - - International Relations and International Political Economy - - - Other
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