Title : Exchange Rate Sensitivity of Japan's Bilateral Trade Flows


Authors : Mohsen Bahmani-Oskooee, Gour Goswami


Journal Title: Japan and the World Economy Volume Number: 16 Publication Year : 2004 Issue Number: 1
Index: scopus Ranking: Q1 ISSN: 0922-1425 Publisher Name: Elsevier
Pages : 1-15
ISBN : 1879-2006
Funding Information:
Funding Source : None
Other Information:
Direct Sustainable Development Goals :
SDG9 Industry, Innovation & Infrastructure
Indirect Sustainable Development Goals :
SDG8 Decent Work & Economic Growth
Sustainable Development Sub Goals :
Develop quality, sustainable infrastructure
Promote inclusive and sustainable industrialization
Upgrade infrastructure and retrofit industries to make them sustainable
Impact statement: The traditional way of assessing the impact of currency depreciation on the trade balance has been to estimate the elasticity of trade volume to relative prices. To this end, most previous studies used aggregate trade data. To avoid problems associated with using aggregate data, recent studies have relied on bilateral trade data. Since import and export price data are not available on a bilateral level, this study proposes an alternative way of assessing the impact of currency depreciation on bilateral trade flows. The models are applied between Japan and its nine largest trading partners using recent advances in time-series modeling. Collaboration: Partner University Keywords: Japan, Exchange Rate, Bilateral Modeling, Trade Balance