Table 2b.
Panel DOLS estimates of trade elasticities for Japanese transportation equipment exports to 20 countries (exports deflated using data from the Bank of Japan).
| (1) | (2) | (3) | (4) | (5) | (6) |
|---|---|---|---|---|---|
| Sector | Exchange Rate Elasticity | GDP Elasticity | Adjusted R-squared | Standard Error of Regression | Number of Observations |
| Cars | −0.77*** (0.08) | 1.39*** (0.29) | 0.956 | 0.261 | 532 |
| Commercial vehicles | −0.75*** (0.16) | 3.81*** (0.66) | 0.844 | 0.660 | 531 |
| Motorcycles | −0.22 (0.15) | 4.66*** (0.50) | 0.871 | 0.462 | 533 |
| Motor vehicle parts | −0.34*** (0.08) | 1.46*** (0.23) | 0.962 | 0.217 | 534 |
Note: The coefficients come from a panel dynamic ordinary least squares regression of Japan’s exports in each sector to the 20 leading importing countries. The right hand side variables are the bilateral real exchange rate between Japan and each importing country and real GDP in the importing countries. Import country-specific fixed effects and time trends are included in the regressions. Annual data over the 1990–2017 period are used.
*** (**) Denotes significance at the 1 % (5 %) levels.
Source: CEPII-Chelem database, Bank of Japan, and calculations by the author.