Interaction Between Trade, Conflict And Cooperation: The Case Of Japan And China

Shiro Armstrong

Asia Pacific Economic Papers from Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University

Abstract: The complex interaction between trade and politics is analysed for the Japan-China relationship using Granger causality tests. The purpose is to determine the presence and direction of causation between trade and political events, both positive and negative, and to gauge an idea of the lag length of causality. Trade is growing quickly between Japan and China despite long standing political distance between the two countries. Results show that the economic relationship underpins and constrains the political relationship between Japan and China while an increase in positive political news and a decrease in negative political news promote trade to some degree.

JEL-codes: C32 F10 F59 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2010
New Economics Papers: this item is included in nep-int and nep-pol
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Working Paper: Interaction between trade, conflict and cooperation: the case of Japan and China (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:csg:ajrcau:386

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