|Budget Amount *help
¥1,900,000 (Direct Cost: ¥1,900,000)
Fiscal Year 1995: ¥600,000 (Direct Cost: ¥600,000)
Fiscal Year 1994: ¥1,300,000 (Direct Cost: ¥1,300,000)
The objective of this research has been to analyze the question of regionalization of international trade, direct investment, finance, and the currency system from the perspective of Japan.
I conducted various types of empirical studies to accomplish this objective. First, I wrote three papers to examine interactions between foreign trade and direct investment using the "gravity model." In these papers, I showed (a) there exist significantly positive correlations between Japanese trade (export and import) and direct investment abroad, (b) such positive correlations do exist for aggregate trade and investment and for disaggregated manufacturing sectors' trade and investment, and (c) Japanese foreign direct investment abroad stimulates exports from countries hosting it. Second, I wrote two papers on the issues of yen internationalization and of the formation of a currency area and the selection of a key currency. In these two papers, I argued that (d) patterns of currency invoicing for Japanese exports and imports are affected by types of trading partners, types of goods being traded, and their interactions, and (e) although it is unlikely that the yen will be chosen as a key currency in East Asia in the near future, the role of the yen in foreign exchange policies of many East Asian countries will rise due to the expected, greater economic interdependence between Japan and East Asia. Finally, I wrote a paper on macroeconomic interdependence in the Asia-Pacific area. In this paper, I found that (f) macroeconomic shocks of many East Asian countries are affected by the shocks in Japan and the USA and that macroeconomic interdependence among the ASEAN countries is quite strong.
From these empirical studies, I could show that the relationships in trade, investment, finance, and currency surrounding Japan is global but at the same time regionalized.