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Has Japan Been Left Out in the Cold by Regional Integration?

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  • Wall, Howard-J

    (Federal Reserve Bank of St Louis)

Abstract

Despite the ongoing worldwide trend toward regional integration, Japan has remained outside of all regional trading agreements. Because more than 60 percent of Japan's trade is with countries that are members of a major regional bloc, this reluctance may have had significant effects on its pattern and volume of trade. Indeed, I find that Japan's exports have been reduced by the integration of its trading partners, and that this effect has been fairly uniform across integration regimes. I also find that regional trading agreements have tended to have a much more negative effect on Japanese trade than on the trade of other nonmembers.

Suggested Citation

  • 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.
  • Handle: RePEc:ime:imemes:v:20:y:2002:i:2:p:117-134
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    References listed on IDEAS

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    2. Zuzana Stuchlíková, 2008. "Changing Regionalism in South-East Asia: some theoretical and practical aspects [Změny v regionalismu v jihovýchodní Asii: vybrané teoretické a praktické aspekty]," Acta Oeconomica Pragensia, Prague University of Economics and Business, vol. 2008(2), pages 90-108.
    3. I-Hui Cheng & Howard J. Wall, 2005. "Controlling for heterogeneity in gravity models of trade and integration," Review, Federal Reserve Bank of St. Louis, vol. 87(Jan), pages 49-63.
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    5. Okubo, Toshihiro, 2004. "The border effect in the Japanese market: A Gravity Model analysis," Journal of the Japanese and International Economies, Elsevier, vol. 18(1), pages 1-11, March.
    6. Fukao, Kyoji & Okubo, Toshihiro & Stern, Robert M., 2003. "An econometric analysis of trade diversion under NAFTA," The North American Journal of Economics and Finance, Elsevier, vol. 14(1), pages 3-24, March.
    7. Peter A.G. van Bergeijk & Selwyn J.V. Moons (ed.), 2018. "Research Handbook on Economic Diplomacy," Books, Edward Elgar Publishing, number 16053.
    8. Peter Egger, 2004. "Estimating regional trading bloc effects with panel data," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 140(1), pages 151-166, March.
    9. Tsurumi Tetsuya & Managi Shunsuke & Hibiki Akira, 2015. "Do Environmental Regulations Increase Bilateral Trade Flows?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 15(4), pages 1549-1577, October.

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    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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