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Revisiting the J-Curve for Japan

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DOI: 10.4236/me.2014.51005    3,271 Downloads   4,978 Views   Citations

ABSTRACT

This paper investigates Japanese trade to see whether the J/S-curve phenomenon between net exports and the terms of trade is observed in the data from 1980Q1 to 2008Q3. Based on the results of a VAR stability test, the aggregate trade data are endogenously split into three sub-period data sets, with the J/S-curve present in the last two. The J/S-curve may stem from the increasing share of China and the oil-exporting countries in Japanese trade. In fact, the J/S-curve is observed in the bilateral trade data with those countries but not in the data with Korea or the United States.

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M. Ono and S. Baak, "Revisiting the J-Curve for Japan," Modern Economy, Vol. 5 No. 1, 2014, pp. 32-47. doi: 10.4236/me.2014.51005.

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