Exchange Rate Changes and Trade Balance: An Empirical Study of the Case of Japan

• Main Author: SHAO, Ziwei
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2008
• Subjects: bilateral trade balance; foreign assets; Vector autoregression estimation; exchange rate; trade surplus; currency appreciation; International Economics
• Online Access: https://ink.library.smu.edu.sg/etd_coll/15; https://ink.library.smu.edu.sg/cgi/viewcontent.cgi?article=1014&context=etd_coll
• Institution: Singapore Management University

This paper attempts to identify the major economic factors that influence the bilateral trade balance between Japan and the US. Differing from conventional elasticities approach, one more variable--the net foreign assets--is added in the Vector Autoregression estimation using quarterly data from 198...