Have U.S.-Japan Trade Agreements Made a Difference?

Byron Scott Gangnes () and Craig Parsons ()
Additional contact information
Craig Parsons: Yokohama National University

No 08-2004, Working Papers from Singapore Management University, School of Economics

Abstract: The few existing empirical studies of U.S.-Japan trade agreements have relied primarily on descriptive statistics or univariate time series methods. We conduct a more powerful test by evaluating agreements in the context of well-specified econometric models. Consistent with trade theory, import demand is modeled as a cointegrating relationship with income and relative price variables, where a trade agreement may cause a structural break in the cointegrating vector. In several cases, we find evidence that market-opening trade agreements may have increased the volume of Japanese imports, while other agreements appear to have had no significant impact.

Keywords: structural break tests; U.S.-Japan trade agreements; import promotion policies (search for similar items in EconPapers)
JEL-codes: F13 F14 C32 (search for similar items in EconPapers)
Date: 2004-03
View list of references

Published in SMU Economics and Statistics Working Paper Series

Downloads: (external link)
https://mercury.smu.edu.sg/rsrchpubupload/1849/JapanTrade.pdf (application/pdf)

Related works:
Working Paper: Have US-Japan Trade Agreements Made a Difference? (2004)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:siu:wpaper:08-2004

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Working Papers from Singapore Management University, School of Economics
Contact information at EDIRC.
Series data maintained by QL THor ().