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The J-Curve and Japan--China commodity trade

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  • Mohsen Bahmani-Oskooee
  • Jia Xu

Abstract

Previous studies that have tested the J-Curve phenomenon for Japan or China employed either aggregate trade data between each country and the rest of the world, or aggregate bilateral data between two trade partners. These studies have found no support for the J-Curve. Suspecting that their models could suffer from aggregation bias, in this paper, we disaggregate bilateral trade flows between the two countries and examine trade by 73 industries. We find evidence of the J-Curve phenomenon in 24 industries, a unique finding for trade between Japan and China.

Suggested Citation

  • Mohsen Bahmani-Oskooee & Jia Xu, 2013. "The J-Curve and Japan--China commodity trade," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 11(1), pages 13-28, February.
    • Handle: RePEc:taf:jocebs:v:11:y:2013:i:1:p:13-28
    DOI: 10.1080/14765284.2012.755300
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    1. Dzanan, Haris & Masih, Mansur, 2017. "Does currency depreciation necessarily result in positive trade balance ? new evidence from Norway," MPRA Paper 82103, University Library of Munich, Germany.

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