This paper uses annual data of the Japanese in services for the period of 1980-2018 to explore the causal relationship between the imports and the exports. We find that: 1) in the short-run, there exist no Granger causal relationship among the employment rate and the Japanese trade in services; 2) in the long-run, both of the Japanese positions in the exports and the imports in the world are Granger causality of the employment rate, but that of the exports has negative effect while that of the imports exerts positive effect on the employment rates, and 3) neither employment rates nor export position in the world trade in services can significantly Granger cause the Japanese import position in the world service trade.
This study explores the nexus among the Japanese trade in services to world trade and the economic development. Assuming that the relationship is linear, short-run Granger causality indicates that the export position negatively Granger causes the Japanese GDP relative to the world; the relative GDP exerts positive effects on the import position, and the export Granger causes the import position with negative effects while Granger causality runs from the later to the former with positive effects, and; the relative GDP positively Granger causes the Japanese import position. In the long-run, Wald tests show that the co-integration relationship Granger causes both the relative GDP and the import position in services, and; both export and import positions Granger cause the relative GDP, and both the relative GDP and the export position Granger cause the Japanese import position, all with positive effects. The export position in services seems to be exogenous to the model system, probably because of the policy interference of export facilitation.
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