Study on the Interaction Between China and Japan’s Economy Based on FDI, Import and Export Trade

In the context of global integration, one country’s economic fluctuations will affect another country through a variety of ways, the global economic crisis in 2008 is the best proof. The economic ties between China and Japan are closely related. Japan was once the largest trading partner of China. I...

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Main Authors: Wangping Yang, Xiaolu Lu
Format: Article
Language:English
Published: Sciendo 2018-04-01
Series:Studies in Business and Economics
Subjects:
Online Access:https://doi.org/10.2478/sbe-2018-0015
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author Wangping Yang
Xiaolu Lu
author_facet Wangping Yang
Xiaolu Lu
author_sort Wangping Yang
collection DOAJ
description In the context of global integration, one country’s economic fluctuations will affect another country through a variety of ways, the global economic crisis in 2008 is the best proof. The economic ties between China and Japan are closely related. Japan was once the largest trading partner of China. It is very important to study the influence mechanism of economic fluctuations between China and Japan for the stable development of China’s economy. This paper selects China’s export to Japan(CEX) Japan’s export to China(JEX) Japan’s direct investment to China (FDI) Chinese gross domestic product (CGDP), Japan’s gross domestic product (JGDP) five variables. We use impulse response and variance decomposition to analyze the interaction of Chinese and Japanese economy. Finally we come to the conclusion: China’s economy affected by the impact of Japan’s economic fluctuations bigger than Japan’s economy affected by China; the contribution rate of imports from Japan is greater than the export to China’s economy.
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spelling doaj.art-dc649c2823434a3ea5334f0e73036a5d2022-12-22T00:07:20ZengSciendoStudies in Business and Economics2344-54162018-04-0113119420810.2478/sbe-2018-0015sbe-2018-0015Study on the Interaction Between China and Japan’s Economy Based on FDI, Import and Export TradeWangping Yang0Xiaolu Lu1School of Economics and Finance, Xi’an Jiaotong University, ChinaSchool of Economics and Finance, Xi’an Jiaotong University, ChinaIn the context of global integration, one country’s economic fluctuations will affect another country through a variety of ways, the global economic crisis in 2008 is the best proof. The economic ties between China and Japan are closely related. Japan was once the largest trading partner of China. It is very important to study the influence mechanism of economic fluctuations between China and Japan for the stable development of China’s economy. This paper selects China’s export to Japan(CEX) Japan’s export to China(JEX) Japan’s direct investment to China (FDI) Chinese gross domestic product (CGDP), Japan’s gross domestic product (JGDP) five variables. We use impulse response and variance decomposition to analyze the interaction of Chinese and Japanese economy. Finally we come to the conclusion: China’s economy affected by the impact of Japan’s economic fluctuations bigger than Japan’s economy affected by China; the contribution rate of imports from Japan is greater than the export to China’s economy.https://doi.org/10.2478/sbe-2018-0015fdiinternational tradeeconomic growthvarimpulse response
spellingShingle Wangping Yang
Xiaolu Lu
Study on the Interaction Between China and Japan’s Economy Based on FDI, Import and Export Trade
Studies in Business and Economics
fdi
international trade
economic growth
var
impulse response
title Study on the Interaction Between China and Japan’s Economy Based on FDI, Import and Export Trade
title_full Study on the Interaction Between China and Japan’s Economy Based on FDI, Import and Export Trade
title_fullStr Study on the Interaction Between China and Japan’s Economy Based on FDI, Import and Export Trade
title_full_unstemmed Study on the Interaction Between China and Japan’s Economy Based on FDI, Import and Export Trade
title_short Study on the Interaction Between China and Japan’s Economy Based on FDI, Import and Export Trade
title_sort study on the interaction between china and japan s economy based on fdi import and export trade
topic fdi
international trade
economic growth
var
impulse response
url https://doi.org/10.2478/sbe-2018-0015
work_keys_str_mv AT wangpingyang studyontheinteractionbetweenchinaandjapanseconomybasedonfdiimportandexporttrade
AT xiaolulu studyontheinteractionbetweenchinaandjapanseconomybasedonfdiimportandexporttrade