ME  Vol.5 No.1 , January 2014
Revisiting the J-Curve for Japan

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.

Cite this paper
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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