Why Has the Border Effect in the Japanese Market Declined?: The Role of Business Networks in East Asia

Hi-Stat Discussion Paper Series from Institute of Economic Research, Hitotsubashi University

Abstract: This paper analyzes the causes of the decline in Japan’s border effect by estimating gravity equations for Japan’s international and interregional trade in four machinery industries (electrical, general, precision, and transportation machinery). In the estimation, we explicitly take account of firms’ networks. We find that ownership relations usually enhance trade between two regions (countries), and also find that we can explain 35% of the decline in Japan’s border effect from 1980 to 1995 in the electrical machinery industry by the increase of international networks.

Keywords: Gravity Model; Border Effect; Networks (search for similar items in EconPapers)
JEL-codes: F14 F17 F21 L14 (search for similar items in EconPapers)
Date: 2004-03
New Economics Papers: this item is included in nep-his and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://hi-stat.ier.hit-u.ac.jp/research/discussion/2003/pdf/D03-24.pdf (application/pdf)

Related works:
Working Paper: Why Has the Border Effect in the Japanese Market Declined? The Role of Business Networks in East Asia (2004)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hst:hstdps:d03-24

Access Statistics for this paper

More papers in Hi-Stat Discussion Paper Series from Institute of Economic Research, Hitotsubashi University Contact information at EDIRC.
Bibliographic data for series maintained by Tatsuji Makino ().