The border effect in the Japanese market: A Gravity Model analysis
This paper analyzes the border effect, which indicates how biased interregional trade is, compared with international trade, by means of the Gravity Model. The border effect reveals how open to the foreign countries the nation is. This research suggests that the border effect in Japan is much lower than that of the US and Canada, and has declined year by year. Furthermore, in 1990, the border effect faded out. These trends may be reflected by international incidents such as the surge of the foreign direct investment to Asian countries and the decline of tariff rate.
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Volume (Year): 18 (2004)
Issue (Month): 1 (March)
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References listed on IDEAS
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- McCallum, John, 1995. "National Borders Matter: Canada-U.S. Regional Trade Patterns," American Economic Review, American Economic Association, vol. 85(3), pages 615-23, June.
- James E. Anderson & Eric van Wincoop, 2003.
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American Economic Association, vol. 93(1), pages 170-192, March.
- James E. Anderson & Eric van Wincoop, 2000. "Gravity with Gravitas: A Solution to the Border Puzzle," Boston College Working Papers in Economics 485, Boston College Department of Economics.
- James E. Anderson & Eric van Wincoop, 2001. "Gravity with Gravitas: A Solution to the Border Puzzle," NBER Working Papers 8079, National Bureau of Economic Research, Inc.
- Wall, Howard-J, 2002.
"Has Japan Been Left Out in the Cold by Regional Integration?,"
Monetary and Economic Studies,
Institute for Monetary and Economic Studies, Bank of Japan, vol. 20(2), pages 117-134, April.
- Howard J. Wall, 2002. "Has Japan been left out in the cold by regional integration?," Review, Federal Reserve Bank of St. Louis, issue Sep, pages 25-36.
- John F. Helliwell, 1995.
"Do National Borders Matter for Quebec's Trade?,"
NBER Working Papers
5215, National Bureau of Economic Research, Inc.
- Carolyn L. Evans, 2003. "The Economic Significance of National Border Effects," American Economic Review, American Economic Association, vol. 93(4), pages 1291-1312, September.
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