publication . Preprint . 2005

Distance on FDI and Trade: The Roles of China and Mexico in the Pacific Basin

Yushi Yoshida; Hiro Ito;
Open Access
  • Published: 01 Mar 2005
In this study, we investigate the dynamics of the trilateral trade relationship among the U.S., Japan and an emerging economy in the Pacific Basin. Our particular attention is paid to two emerging countries; China and Mexico. In what we call the “triangular trade approach,” we explore how Japanese trade with and foreign direct investment to an emerging economy affect its exports to the US market. We apply the trilateral trade approach to eight Southeast Asian countries, four American continent countries and four European countries. Our empirical results suggest that the exports of China and Mexico are directly competing with those of Japan in US markets while th...
free text keywords: China, Distance; Foreign Direct Investment; FTA; Japan; Trade; Mexico; Triangular Trade Approach, jel:F14, jel:F23


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