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Interaction between trade, conflict and cooperation: The case of Japan and China

CollectionsANU Crawford School of Public Policy
Title: Interaction between trade, conflict and cooperation: The case of Japan and China
Author(s): Armstrong, Shiro
Date published: 2010
Publisher: Australian National University
Canberra, ACT : Australia–Japan Research Centre, Crawford School of Economics and Government, The Australian National University
Series/Report no.: Asia Pacific Economic Papers: No. 386, 2010
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.
ISBN: 978-0-86413-340-3
ISSN: 1834-8971


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