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Do Japan’s Free Trade Agreements Increase its International Trade?

Author

Listed:
  • Ando, Mitsuyo

    (Keio University)

  • Urata, Shujiro

    (Waseda University)

  • Yamanouchi, Kenta

    (Kagawa University)

Abstract

This study analyzes the impacts of free trade agreements (FTAs) on bilateral trade, focusing on Japan’s FTAs. In particular, we examined both static and dynamic effects at the aggregated and disaggregated levels, using two datasets between 1995 and 2016 for Japanese trade only and world trade. For the static analysis, we investigated the overall impacts and the effect of individual FTAs. Regarding dynamic analysis, we considered the time since their enactment. Our results indicate that the impacts are heterogeneous among Japan’s FTAs and products, with a trade creation effect for some FTA partners. Moreover, our findings reveal that the trade creation effect is probably overestimated when trade between the third countries is not considered. We also found a positive dynamic effect for some products. Such a dynamic effect may emerge due to a longer time for firms to understand FTAs and learn their use and the gradual tariff reduction for some products.

Suggested Citation

  • Ando, Mitsuyo & Urata, Shujiro & Yamanouchi, Kenta, 2022. "Do Japan’s Free Trade Agreements Increase its International Trade?," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 37(1), pages 1-29.
    • Handle: RePEc:ris:integr:0842
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    Citations

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    Cited by:

    1. Jose Carlos Montes Ninaquispe & Alberto Luis Pantaleón Santa María & Diego Alejandro Ludeña Jugo & William Teófilo Castro Muñoz & Juan Cesar Farias Rodriguez & Billy Heinrich Maco Elera & Kelly Cristi, 2024. "Peruvian Agro-Exports’ Competitiveness: An Assessment of the Export Development of Its Main Products," Economies, MDPI, vol. 12(6), pages 1-16, June.
    2. Pousseni Bakouan & Mahamadou Diarra & Idrissa M. Ouedraogo, 2024. "How Can Tariff Elimination and Trade Facilitation Affect East African Economies?," Foreign Trade Review, , vol. 59(1), pages 117-145, February.
    3. Chae-Deug Yi, 2022. "The impact of the Japan-European Union Economic Partnership Agreement on the trade and income of Japan, the European Union, and South Korea," Asia Europe Journal, Springer, vol. 20(3), pages 329-356, September.

    More about this item

    Keywords

    Free trade agreements; Japan; gravity model; trade creation effects; dynamic effects;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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