Are the U.S. Exports to and Imports from Japan Cointegrated?

Yangru Wu () and Junxi Zhang
Additional contact information
Junxi Zhang: University of Hong Kong, Postal: University of Hong Kong

Journal of Economic Integration, 1998, vol. 13, 626-643

Abstract:

The size and duration of the U.S. bilateral trade deficit with Japan has raised concern from both politicians and the general public. This paper seeks to investigate the behavior of this deficit by conducting stationarity tests on the deficit and tests for long-run relationships between U.S. exports to and imports from Japan. We show that, if an endogenously searched break is properly accounted for, exports and imports are cointegrated with a coefficient of one, and the deficit appears to be stationar y. Thus, in contrast to the public’s percep - tion, we conclude that the U.S.-Japan trade deficit may not be “too large.”

Keywords: U.S. Exports; U.S. Imports; Japan Cointegrated (search for similar items in EconPapers)
JEL-codes: C22 F14 (search for similar items in EconPapers)
Date: 1998
References: Add references at CitEc
Citations: View citations in EconPapers (2)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
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: https://EconPapers.repec.org/RePEc:ris:integr:0091

Access Statistics for this article

Journal of Economic Integration is currently edited by Seongeun Kim

More articles in Journal of Economic Integration from Center for Economic Integration, Sejong University Contact information at EDIRC.
Bibliographic data for series maintained by Yunhoe Kim ().