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Trade Bloc Formation in Interwar Japan --Gravity Model Analysis-- (forthcoming in Journal of the Japanese and International Economies)

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Abstract

The purpose of this paper is to discuss the trading system in the interwar period concerning the Japanese Empire by means of border effect analysis in the gravity model. The results show sizeable and steadily increasing trading bloc border effects from the 1910s through the 1930s. This sizeable border effect might have resulted from many possible factors: trade diversion and creation due to increased protectionism and industrialisation in Korea and Formosa, certain political factors, and Japanese migration to Korea and Formosa, which contributed to a 52% increase of bloc border effects in mainland Japan.

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Bibliographic Info

Paper provided by Economics Section, The Graduate Institute of International Studies in its series IHEID Working Papers with number 03-2006.

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Length: 35
Date of creation: 15 Jan 2006
Date of revision:
Handle: RePEc:gii:giihei:heiwp03-2006

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Keywords: Trade Blocs; Gravity Model; Bloc Border Effect; Trade Diversion and Creation; Migration.;

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