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Does financial variable(s) explain the Japanese aggregate import demand? A cointegration analysis

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  • Tuck Cheong Tang

Abstract

This study is an extension of the study by Tang (Japan and the World Economy, 15, 419-36, 2003b), which has documented no long-run equilibrium relationship among the Japanese aggregate imports, real income and relative price of imports. This finding, however, is probably due to the bias of variable(s) omission. To fill this gap, financial variable(s) has been empirically incorporated into the Japan's import demand analysis. Using a cointegration approach, this study has provided empirical support for the inclusion of financial variable(s) into the Japanese aggregate import demand function. This is an important finding from the viewpoint of policymakers upon the implications of momentary policies on the Japanese trade balance.

Suggested Citation

  • Tuck Cheong Tang, 2004. "Does financial variable(s) explain the Japanese aggregate import demand? A cointegration analysis," Applied Economics Letters, Taylor & Francis Journals, vol. 11(12), pages 775-780.
    • Handle: RePEc:taf:apeclt:v:11:y:2004:i:12:p:775-780
    DOI: 10.1080/1350485042000236584
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    8. Swarnjit Arora & Mohsen Bahmani-Oskooee & Gour Goswami, 2003. "Bilateral J-curve between India and her trading partners," Applied Economics, Taylor & Francis Journals, vol. 35(9), pages 1037-1041.
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    Cited by:

    1. Philip Chimobi Omoke, 2012. "Bank Credit and Aggregate Import Demand in Nigeria: A Cointegration Analysis," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 3(3), pages 28-37, June.
    2. Ranjini L. Thaver & E. M. Ekanayake, 2010. "The Impact Of Apartheid And International Sanctions On South Africa'S Import Demand Function: An Empirical Analysis," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 4(4), pages 11-22.
    3. Muhammad Ahad & Talat Afza & Muhammad Shahbaz, 2017. "Financial Development and Estimation of Import Demand Function in Pakistan: Evidence from Combined Cointegration and Causality Tests," Global Business Review, International Management Institute, vol. 18(1), pages 118-131, February.
    4. Ranjini L. Thaver & E. M. Ekanayake & Daniel R. Plante, 2012. "An Estimation Of The Impact Of Gear And Nepad On South Africa'S Disaggregated Import Demand Function With Nigeria," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 6(2), pages 69-79.
    5. Tuck Cheong Tang, 2008. "Aggregate Import Demand Function for Japan: A Cointegration Re-investigation," Global Economic Review, Taylor & Francis Journals, vol. 37(3), pages 363-377.
    6. Khyati Kathuria & Nand Kumar, 2021. "An Empirical Investigation of the Disaggregated Import Demand Function: Non-linear ARDL Framework," Foreign Trade Review, , vol. 56(2), pages 197-205, May.

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