The influences of economic openness on Japan's balancing item: an empirical note

Tuck Cheong Tang ()

Applied Economics Letters, 2006, vol. 13, issue 1, 7-10

Abstract: Exploring the factors influencing the balancing item of balance of payments accounts has seldom been a subject of research in international economics. Following Brooks and Fausten (1998), and using Japan's data, this study has empirically examined the influences of economic openness on balancing item. The results of subset VAR (Vector Autoregression) approach, Granger causality test, impulse responses function, and variance decomposition have showed that, to a certain extent, economic openness does influence the behaviour of Japan's balancing item.

Date: 2006
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DOI: 10.1080/13504850500119146

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