<abstract xmlns="http://www.w3.org/1999/xhtml"><p>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.</p></abstract>

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.

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

Studies in Business and Economics

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

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...

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

Published Online: May 08, 2018

Page range: 194 - 208

DOI: https://doi.org/10.2478/sbe-2018-0015

Keywords
FDI, International trade, economic growth, VAR, impulse response

© 2018 Wangping Yang et al., published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

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

Published Online: May 08, 2018

Page range: 194 - 208

DOI: https://doi.org/10.2478/sbe-2018-0015

KeywordsFDI, International trade, economic growth, VAR, impulse response

© 2018 Wangping Yang et al., published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
FDI, International trade, economic growth, VAR, impulse response