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Dynamic Two-way Relationship between Exporting and Importing: Evidence from Japan

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  • Kazunobu HAYAKAWA

    (Bangkok Research Centre, Institute of Developing Economies, Thailand)

  • Toshiyuki MATSUURA

    (Keio Economic Observatory, Keio University)

Abstract

In this paper, we investigate the dynamic nature of trading using Japanese firm-level data. Specifically, we examine state dependence and cross effects in exporting and importing. Our findings are as follows. First, we found significant state dependence and cross effects in exporting and importing. Second, those effects diminish over time. Third, such state dependence and cross effects are found to be market-specific. Furthermore, such market specificity is more significant in small and medium-sized enterprises. Last, past export/import intensity matters in the current trade status.

Suggested Citation

  • Kazunobu HAYAKAWA & Toshiyuki MATSUURA, 2014. "Dynamic Two-way Relationship between Exporting and Importing: Evidence from Japan," Working Papers DP-2014-08, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:wpaper:dp-2014-08
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    References listed on IDEAS

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    More about this item

    Keywords

    : Japan; Firm-level; Two-way relationship;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration

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