Understanding Japan's Capital Goods Exports

Willem Thorbecke

Discussion papers from Research Institute of Economy, Trade and Industry (RIETI)

Abstract: Japan is the leading supplier of sophisticated capital goods to East Asian countries. These goods embody advanced technologies and facilitate learning and productivity growth. Capital goods also represent 30%-40% of Japan's exports. This paper investigates the determinants of these exports. Results from dynamic ordinary least squares estimation indicate that exports depend on exchange rates, income in the importing countries, and downstream countries' exports to the rest of the world. Results from out-of-sample forecasts indicate that Japanese exports crashed in 2009 because of the perfect storm of a yen appreciation, a global slowdown, and a collapse in Asia's exports.

Pages: 31 pages
Date: 2015-04
New Economics Papers: this item is included in nep-int
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Citations: View citations in EconPapers (1)

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https://www.rieti.go.jp/jp/publications/dp/15e044.pdf (application/pdf)

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Journal Article: Understanding Japan's Capital Goods Exports (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:eti:dpaper:15044

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