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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.

Suggested Citation

  • Toshihiro Okubo, 2006. "Trade Bloc Formation in Interwar Japan --Gravity Model Analysis-- (forthcoming in Journal of the Japanese and International Economies)," IHEID Working Papers 03-2006, Economics Section, The Graduate Institute of International Studies.
  • 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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