2010•Journal of Shanxi Datong UniversityRequires access

An Empirical Study of The Effects of Exchange Rate Fluctuation on Japan's Trade Balance

LI Yan-yong

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Abstract

The paper analyses the effzct of exchange rate on trade balance of Japan by the cointegration analysis.We find that the effects of the exchange rate fluctuation on trade balance is negative to Japan,the revaluation of real effective exchange rate can cause trade surplus to reduce.But this influence is not remarkable,the trade balance change is also restricted by each kind of factor.

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What this paper is about

The paper analyses the effzct of exchange rate on trade balance of Japan by the cointegration analysis.We find that the effects of the exchange rate fluctuation on trade balance is negative to Japan,the revaluation of real effective exchange rate can cause trade surplus to reduce.But this influence is not remarkable,the trade balance change is also restricted by each kind of factor.

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Available abstract

The paper analyses the effzct of exchange rate on trade balance of Japan by the cointegration analysis.We find that the effects of the exchange rate fluctuation on trade balance is negative to Japan,the revaluation of real effective exchange rate can cause trade surplus to reduce.But this influence is not remarkable,the trade balance change is also restricted by each kind of factor.

Key concepts: Balance of trade, Exchange rate, Cointegration, Economics, Balance (ability), Monetary economics, International economics, Econometrics

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