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Is Japan's Trade (still) Different?

  • James Harrigan
  • Rohit Vanjani

Does Japanese trade in manufactured goods differ from the rest-of-the world average and from the U.S.? We use a simple industry-level gravity model and 1981-1998 data to answer this question. We construct a measure of normalized imports by dividing bilateral industry-level imports by the importer's aggregate absorption and the exporter's industry output. We find that Japan imports less than other countries, but also exports less than other countries. Relative to the U.S., Japanese export performance is half as strong today as it was in the mid-1980s. Bilaterally, Japan's normalized imports from the U.S. are greater than U.S. normalized imports from Japan.

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File URL: http://www.nber.org/papers/w10058.pdf
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 10058.

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Date of creation: Nov 2003
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Publication status: published as Harrigan, James and Rohit Vanjani. "Is Japan's Trade (Still) Different?," Journal of the Japanese and International Economies, 2003, v17(4,Dec), 507-519.
Handle: RePEc:nbr:nberwo:10058
Note: ITI
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  1. Edward E. Leamer, 1987. "Measures of Openness," UCLA Economics Working Papers 447, UCLA Department of Economics.
    • Edward E. Leamer, 1988. "Measures of Openness," NBER Chapters, in: Trade Policy Issues and Empirical Analysis, pages 145-204 National Bureau of Economic Research, Inc.
  2. Jonathan Eaton & Samuel Kortum, 2002. "Technology, Geography, and Trade," Econometrica, Econometric Society, vol. 70(5), pages 1741-1779, September.
  3. Harrigan, James, 1996. "Openness to trade in manufactures in the OECD," Journal of International Economics, Elsevier, vol. 40(1-2), pages 23-39, February.
  4. James Harrigan, 2001. "Specialization and the Volume of Trade: Do the Data Obey the Laws?," NBER Working Papers 8675, National Bureau of Economic Research, Inc.
  5. Gary R. Saxonhouse, 1989. "Differentiated Products, Economies of Scale, and Access to the Japanese Market," NBER Chapters, in: Trade Policies for International Competitiveness, pages 145-184 National Bureau of Economic Research, Inc.
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